Wireless Minneapolis

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					  Wireless Minneapolis




  Municipal Broadband Initiative
          Business Case



             Version 3.0




9/14/2006
                                                     TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY ........................................................................................ 1
2.0 WIRELESS MINNEAPOLIS PROGRAM GOALS .................................................. 5
3.0 BACKGROUND...................................................................................................... 8
THE BROADBAND INDUSTRY .......................................................................................................................... 8
MUNICIPAL TRENDS ...................................................................................................................................... 9
MUNICIPAL NETWORK GROWTH ................................................................................................................... 11
MINNEAPOLIS DEMOGRAPHICS .................................................................................................................... 12
4.0 MINNEAPOLIS STRATEGY................................................................................. 15
REQUEST FOR PROPOSAL DEVELOPMENT PROCESS .................................................................................... 15
PUBLIC/PRIVATE PARTNERSHIP APPROACH ................................................................................................. 16
PILOT PROCESS ......................................................................................................................................... 22
NETWORK DEPLOYMENT STRATEGY ............................................................................................................ 25
WIRELESS MINNEAPOLIS COMMUNITY ENGAGEMENT .................................................................................... 27
5.0 REQUIREMENTS, DESIRED SERVICES, AND EXPECTED BENEFITS............ 31
PUBLIC SAFETY .......................................................................................................................................... 31
INSTITUTIONAL SERVICES ............................................................................................................................ 32
DESIRED RESIDENTIAL SERVICES ................................................................................................................ 34
DESIRED BUSINESS SERVICES..................................................................................................................... 35
BROADBAND AS CITY AMENITY FOR RESIDENTS AND VISITORS ...................................................................... 35
IMPACT OF WIRELESS MINNEAPOLIS ............................................................................................................ 36
6.0 PRODUCT AND SERVICES SOLUTIONS........................................................... 43
PRODUCTS AND SERVICES .......................................................................................................................... 43
TECHNOLOGY AND SERVICE OFFERINGS ...................................................................................................... 48
CUSTOMER SUPPORT ................................................................................................................................. 49
MARKETING AND SALES .............................................................................................................................. 50
NETWORK OPERATIONS .............................................................................................................................. 51
SECURITY ................................................................................................................................................... 53
7.0 FINANCIAL SUMMARY ....................................................................................... 54
8.0 FUNDING............................................................................................................. 55
TAXPAYERS ................................................................................................................................................ 55
VENDORS ................................................................................................................................................... 55
INVESTORS ................................................................................................................................................. 55
GRANTS ..................................................................................................................................................... 56




                                  City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                                                                            Page i of 74
10.0 ATTACHMENTS................................................................................................ 63
BIS STRATEGIC PLAN ................................................................................................................................. 64
JUPITER RESEARCH REPORT....................................................................................................................... 65
COUNCIL RESOLUTION ................................................................................................................................ 66
THE RFP.................................................................................................................................................... 67
CITY OF MINNEAPOLIS COMMUNICATIONS PLAN ........................................................................................... 68
FAQ’S ........................................................................................................................................................ 69
DRAFT PILOT SPECIFICATIONS..................................................................................................................... 70
WORKGROUP SUMMARIES ........................................................................................................................... 71
PARTICIPANT LIST ....................................................................................................................................... 72
ASSESSING THE DIGITAL DIVIDE IN MINNESOTA ............................................................................................ 73
STATE OF THE DIGITAL DIVIDE IN MINNEAPOLIS ............................................................................................ 74




                                  City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                                                                             Page ii of 74
1.0 EXECUTIVE SUMMARY
The City of Minneapolis issued a Request for Proposal on April 13, 2005 to solicit
proposals from the private sector to build, own and operate a reliable, flexible and open
wireless broadband network that leverages and augments the City’s existing, owned Fiber
Optic network assets. The City requires a broadband network to; enhance Public Safety,
strengthen the vitality of the City’s technology infrastructure, support staff mobility for a
more cost effective delivery of City services, promote a more sustainable Minneapolis,
maximize economic development opportunities, address disparities to support strong,
healthy families, and enhance the City’s livability.

The Wireless Minneapolis network will be comprised of additional Fiber Optic assets,
which the City will own; and building mounted antennas and street light pole mounted
radio access devices, which will be owned by the Private Partner.

Cities such as Portland, Philadelphia, Anaheim, Milwaukee, Long Beach, Oakland, and
New Orleans have successfully developed plans for the implementation of similar
networks.

There are three major target market segments for the City of Minneapolis broadband wireless
network: Institutional (Government), Residential, (including underserved populations), and
Businesses. Such a deployment will provide the City’s Public Safety personnel and 911 First
Responders with an enhanced mobile communications system that complies with State and
Federal Homeland Security directives requiring incident management communications systems
that are reliable, interoperable and scalable. It will provide non-emergency personnel with the
tools to interact in real time with City information systems from the field and complete 311
service requests more quickly. Aligning IT investments with strategic priorities and business
imperatives established by the Council and City department heads is a critical organizational
imperative.

In addition, the wireless network will also serve as a desirable City amenity, stimulating
interest in the City and providing convenience for citizens, business owners and visitors alike.

This network will offer ubiquitous broadband access City-wide, thereby eliminating existing
“dead zones” or areas of limited penetration by current broadband market providers. The
deployment planned for the City of Minneapolis is inclusive and will offer network neutrality
through wholesale access for new and existing Internet Service Providers, as well as for new
and existing Hot Spots, allowing them to acquire broadband connectivity at more competitive
rates.

City Staff is prepared to guide the implementation of a network that offers benefits to all
residents, as well as those who work, visit, or attend school in Minneapolis. Central to our
strategy is the requirement that the network provide the same high level of network access in
every neighborhood throughout the City. This is critical for Public Safety applications and
essential to ensure inclusion in the digital economy for all residents.



                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                       Page 1 of 74
Our society and economy is increasingly reliant on information technology. Many low-income
communities are isolated from recent technological advances and do not have access to
personal computers, the Internet and the interactions and opportunities these technologies
provide. This experience defines the “digital divide” – the separation between those who do
and those who do not have access to information technology.

City of Minneapolis will draw from the documentation, developed and prioritized by
Community Computer Access Network and Alliance for Metro Stability from community
input, to craft a community benefits agreement, develop seed funding mechanisms for digital
inclusion initiatives, and develop a structure for ongoing oversight in conjunction with CCAN;
sponsor of the Computer Technology Empowerment Program (CTEP) as integral elements of
the contract negotiations process.
Access for individuals, capacity building for organizations, content and applications
development, taken together, constitutes a comprehensive strategy for creating digital
inclusion. The Wireless Minneapolis initiative serves the important function of building the
expanded Fiber Optic infrastructure and wireless overlay upon which we can develop strategies
for greater social and economic success. Parallel to this universal access strategy, we need
efforts that promote the development of relevant content for residents, businesses and visitors
and innovative applications that can support the work of community based organizations
focused on promoting equity and, economic, social and cultural benefit for the residents,
businesses, visitors and employees of City of Minneapolis.

To ensure that the design of the desired broadband network meets the technical and business
requirements of City institutional users, the project team initiated a series of working group
sessions beginning in August, 2004 (in anticipation of City Council Committee Action) and
continuing into 2005, and numerous one on one and small group meetings with City personnel
that continue today. Each working group developed a summary of recommendations for
network services, technical requirements, management strategies, contract priorities, and
potential services for City Departments, residents, community technology centers,
neighborhood associations, parks, schools, libraries and businesses to assist the project team in
the development of a Request for Proposal.

In addition, project team members presented at numerous technology and digital communities
conferences in Minneapolis and the surrounding area, spoke with other local municipalities,
met with technology providers, neighborhood and business leaders and community based
organization working groups to communicate ideas, gather input and gain insight into issues
and opportunities.

Members of the project team also researched the global broadband market to gather as much
information as possible on deployed and planned municipal scale broadband networks. This
effort included interaction with broadband network equipment and software vendors, as well as
more in depth discussions with representative from various municipalities and counties
nationwide.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 2 of 74
Members of the working groups and the project team discussed the various ownership business
models for the broadband network. The total capital funding requirement to fully implement
this program is projected to exceed $25 million dollars (see page 54). It is estimated that more
than $10 million dollars will be needed to construct the wireless portion of the network. Fiber
Optic improvements will exceed $3.5 million dollars. Investment in personnel, marketing,
advertising, and seed funding for digital inclusion initiatives will likely top $1.6 million dollars.
First year losses may approach $12 million dollars. Based upon Council direction, City capital
budget constraints, existing bond obligations, exposure to risk, potential regulatory/legal
impediments, and the complexity of network start up and ongoing operations management, it
was ultimately determined that the Public/Private partnership business model was the most
appropriate model for the City to pursue. It is City staff’s recommendation that this model be
utilized.

The Public/Private Partnership model allows the City to continue to own all existing and new
Fiber Optic network assets, contribute use of pole and City building hanging assets, facilitate
the procurement process and serve as an anchor tenant for network services. The Private
Partner will fund, build and operate the wholesale and retail wireless network, and coordinated
required applications development and integration.

    ‘Indeed, let there be Wi-Fi! But let’s not pretend that idea of municipal ownership
    is seizing the nation. There’s every indication that municipal broadband projects--
    where cities attempt to own and operate their own competitive networks--are in
    retreat, and that private enterprise will build it and own broadband. And that’s the
    right way to go.’

    Steve Titch, Jan. 5, 2006

    (Steve Titch is the Senior Fellow for information technology and telecom policy at
    The Heartland Institute, a nonprofit organization devoted to discovering and
    promoting free-market solutions to social and economic problems.)

Jupiter Research recently complied information on 83 different municipal wireless initiatives.
Their report, dated June 14, 2005, entitled “Municipal Wireless: Partner to Spread Risks and
Costs While Maximizing Benefit Opportunities” extensively discusses the threats, alternatives,
and opportunities for the use of municipal wireless broadband networks.

Some of the key findings of this Jupiter Research report are as follows:
   • Government effectiveness and efficiency are the top priorities and justifications for
      build out.
   • Governments must work with commercial entities to share the costs and risks of
      municipal networks. Such partnerships offer ISP’s stable anchor tenants, lowered build
      out costs, and customer acquisition opportunities, while governments gain a new way to
      improve business operations, offer City amenities, and improve public safety.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                        Page 3 of 74
    •   Building, running, and maintaining a citywide or countywide network to support a large
        number of users is complex. Although city and county authorities have departments of
        information technology, they are not resourced as commercial service providers and do
        not have the necessary institutional knowledge to take on this role.
    •   Municipal networks face substantial operational and technological hurdles going
        forward – this will lead to a variety of failures. Jupiter cites some of these hurdles as:
        setting pricing, estimating benefits, unproven scalability, and technology change.

Subsequent to the data gathering, requirements development, and vendor/product analysis, the
project team proceeded with the development of an extensive Request for Proposal. A strong
turnout at the Pre Proposal Conference, with more than 90 companies in attendance,
represented by more than 125 individuals demonstrated widespread interest in addressing the
City’s broadband gap.

Many of these initial 90 companies later formed business consortia to improve their position in
the competitive bidding process. Twenty organizations registered as potential Prime
Contractors. Nine teams submitted proposals for consideration and were involved in the
analysis and selection phase of the project.

The overall project team, designated members of the working groups and the selection
committee, with the assistance of the internationally recognized Yankee Group Market
Research and Consulting firm, thoroughly analyzed and rated each of the nine RFP responses
that were received by the RFP response deadline. Ultimately, two finalists were selected:
EarthLink, Inc. and US Internet Wireless.

Now that the City’s project team and its associates have selected two finalist companies, these
finalists are schedule to conduct focused near-term pilot projects for the broadband network.
The recommended pilot project sites have been selected to provide a cross-section of City areas
that will be served by the proposed City-wide broadband network deployment. The pilots will
demonstrate “proof-of-concept” for both the technology itself and effective support for City
institutional requirements.

The City will host open house events and CCAN’s CTEP AmeriCorps project, in association
with Intermedia Arts, will facilitate community workshops at Community Technology Centers
located within each pilot area. In addition, members of the project team continue to solicit
input from numerous community organizations, City Council members, and other interested
parties to both inform the community of the project direction as well as to elicit
recommendations for continuing design and negotiation efforts.

It is staff’s recommendation that the City move forward to implement the Broadband IP Data
Access Services program in conformance with the Ways and Means resolution dated November
11, 2004.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 4 of 74
2.0 WIRELESS MINNEAPOLIS PROGRAM GOALS
From economic and social development to revenue generation, cities and municipal
governments have a variety of motivations for bringing together wireless broadband users,
including city employees, residents, employers, and visitors. Wireless technologies can bring
more efficiency to government operations, provide a seamless connectivity experience for
residents and travelers, and help bridge the digital divide in low-income and underserved
neighborhoods.

The City of Minneapolis is currently engaged in a number of closely linked initiatives that are
focused on enhancing Public Safety (implementation of new E-911 and Computer Aided
Dispatch systems); improving City of Minneapolis services for residents, businesses and
visitors; streamlining processes associated with City of Minneapolis service delivery (311 and
Remote Inspector programs); reducing costs for all City of Minneapolis departments; and
improving communications to and within all workgroups of City of Minneapolis government
(upgrade of the City-wide telecommunications system). To support City of Minneapolis goals,
challenges and initiatives, Public Safety personnel and other institutional department
workgroups require ubiquitous access to reliable, high-speed, high-performance fixed and
mobile broadband IP data connectivity services. These services will be deployed to optimize
the cost-effectiveness of City of Minneapolis operations and to improve overall service delivery
to constituents.

The City of Minneapolis Business Information Services (BIS) Business Plan 2006-20010 aligns
Broadband plans with the City’s strategic goals. BIS defines its Mission as transforming City
government to be more integrated, customer-centric, efficient, accountable, and accessible. One
of the key trends and challenges the BIS Department cites in the plan as a focus for 2006 is
Broadband Internet. The plan states: “Broadband Internet technology is rapidly emerging in
cities as an option to meet institutional, business, residential and visitor demand for low cost,
high-speed Internet services. BIS will implement a fixed and mobile broadband Internet
services capability to meet the City’s internal institutional needs and provide a universal
broadband communications backbone that benefits the residents and businesses as well.”

The BIS Business Plan proceeds to list the City goals and to cite ways in which BIS, either
directly or indirectly, can contribute to the specific goal. The ways in which BIS feels they will
be able to contribute to attainment of the City goals that are listed below have been extracted
from the BIS Business Plan. The Broadband network project team believes that successful
deployment of the planned broadband network will help to ensure the effectiveness of the BIS
contribution to attainment of these City goals.

Build communities where all people feel safe and trust the City’s public safety
professionals and systems.
   • Provide the City with a robust public safety system that will assist Police, Fire, and the
       City Attorney in effective and efficient emergency services, law enforcement, and
       prosecution.
   • Easy query of information provides trends and assistance in the tracking and capturing
       of criminals to improve public safety and confidence.



                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 5 of 74
    •   Provide information to the Fire department regarding the property so they are better-
        prepared when they arrive at the scene and may reduce lives lost.
    •   Collaborate with the City’s public safety departments to meet their needs with the tools
        and services that will improve efficiencies and provide necessary information.

Maintain the physical infrastructure to ensure a healthy, vital, and safe City.
  • Collaborate with Public Works to meet its needs with the tools and services to improve
      efficiencies and provide information necessary to maintain the City’s physical
      infrastructure.
  • Work with MPD to expand programs like the Safe Zone initiative to improve quality of
      life and attract new businesses.

Deliver consistently high quality City services at a good value to our taxpayers.
   • Leverage the City’s investment in technology through improved utilization and
       standardization of current assets, tools, and systems.

Create an environment that maximizes economic development opportunities.
   • Build an institutional network of high-speed broadband Internet service to all areas of
      the City to encourage businesses to invest in the City.
   • Provide and support the technological infrastructure to enable businesses to establish
      economic development and promote digital inclusion and provide access to all
      residents.

Preserve and enhance our environmental, economic, and social realms to promote a
sustainable Minneapolis.
   • Collaborate with City departments to re-engineer business processes and implement
       systems that promote a sustainable Minneapolis.

Promote public, community and private partnerships to address disparities and to
support strong, healthy families and communities.
   • Promote development of the technological infrastructure to close the digital divide and
      provide access to everyone.

Strengthen City government management and enhance community
engagement.
   • Align IT investments with strategic priorities and business imperatives established by
      the Council and City department heads.
   • Expand direct community involvement in major enterprise initiatives such as One
      Call/311, One Stop, Broadband Internet Services, i-Site and Safe Zone. Through these
      programs, BIS builds relationships with organizations such as CCAN, AmeriCorps-
      CTEP, Minneapolis BOMA, Minneapolis Chamber of Commerce, Metropolitan Airport
      Commission, Metro Transit, University of Minnesota, GMCVA, Park and Recreation
      Board, Library Board, School Board, and NRP.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 6 of 74
Municipal governments who are taking a leadership role in the deployment of wireless Internet
networks face numerous policy and planning issues. The goal setting discussions associated
with this program will attempt to explore these questions.

    •   How does city government build consensus among institutional network stakeholders
        and meet constituents’ needs?
    •   How will the network be funded?
    •   Is a public / private partnership desirable for building out and managing the network?
    •   Where will revenues flow?
    •   How can the City’s Institutional requirements be best served?
    •   How will we most appropriately address our immediate Institutional needs and support
        our long range strategy?




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 7 of 74
3.0 BACKGROUND

The Broadband Industry
Driving forces for implementing a municipal broadband IP data access network, according to
the MIT Internet and Telephony Consortium Group (http://itel.mit.edu/), include the following:
    • Local broadband needs have not been met by many private sector providers in an
       adequate manner.
    • The current economic environment, especially in regards to telecommunications, makes
       such deployment highly unlikely in the near future
    • Regulatory and legal delays caused by the 1996 Telecommunications Act and initiated
       by the RBOC’s have resulted in institutional stalemates and excessive cost factors to
       create an inefficient path to broadband deployment.
    • A precedent exists for the establishment of City-wide broadband networks. There are
       over 200 broadband networks today in towns and municipalities throughout the United
       States.

The City of Minneapolis is currently served by a wide variety of communications services
providers offering both wired and wireless broadband connectivity to residents and businesses
in the metropolitan area. The marketplace includes a variety of provider categories offering a
range of connectivity options at widely varying prices.

The Broadband Industry has developed sophisticated wireless broadband access, mesh and
backhaul strategies. These companies can take advantage of their state of the art fixed wireless
infrastructure components to deploy a community-wide, wireless cloud. Such a deployment
can provide the City’s Public Safety infrastructure with an enhanced mobile broadband
communications system that complies with State and Federal Homeland Security directives
requiring incident management communications systems that are reliable, interoperable and
scalable.

Other City departments will be able to utilize this network system in myriad ways. Spectrum
will also be available across the network to provide robust fixed and mobile services to
residential, commercial and visitors within the City’s borders.

In recent years, many equipment manufacturers have advanced their broadband technology
platforms to the point that there are now implementing city scale systems capable of delivering
economical, reliable and secure wide area coverage with universal access across a metropolitan
area. The public’s growing acceptance and adoption of wireless enabled mobile devices such
as laptops and PDA’s, combined with the enormous growth of content transported over the
Internet, has resulted in significant increases in demand and the ability to effectively utilize an
efficient wide area delivery of high-speed bandwidth.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                       Page 8 of 74
This public demand has motivated municipalities (like Minneapolis) to search for infrastructure
solutions that will provide truly mobile and interoperable voice, video and data applications for
both institutional users, residents, businesses and increasingly for homeland security and public
safety purposes. By providing mobile broadband services to Minneapolis through a public /
private partnership model, the City will ultimately enable deep market penetration, continually
increasing opportunities for continuous upgrades of network functionality.

The potential provider categories investigated include:

    •   Local Telephone Company – Qwest – offers DSL, T-1, and T-3 access to municipal
        departments, residents and businesses
    •   Cable TV Service Provider – Time Warner Cable resells Internet access services from
        Qwest and EarthLink and is in market trials in selected markets with additional
        offerings.
    •   Standard Internet Service Providers – numerous ISP’s offer Minneapolis businesses and
        residents an array of wired and wireless services. Providers include EarthLink,
        VISI.com, US Internet, TCQ Internet, Twin Cities Internet, etc.
    •   Wireless Internet Service Providers – offer wireless broadband connectivity in a range
        of bandwidth capacities to residents and businesses in the metropolitan area. Providers
        include Stonebridge and Implex.Net
    •   Wireless Point-to-Point Providers – offer fixed wireless broadband connectivity
        primarily to local businesses.
    •   Hot Spots – there are hundreds of Hot Spot locations in the metropolitan area that offer
        either free or subscriber-based access to the Internet via their own access facility. Hot
        Spot locations include numerous hotels, restaurants, cafes, coffee shops, and other
        businesses.

The new broadband IP data access network planned for the City of Minneapolis will offer
wholesale access to new and existing Internet Service Providers, as well as to new and existing
Hot Spots, thereby allowing them to acquire connectivity at more competitive rates and
ensuring network neutrality. This new network will offer ubiquitous broadband access City-
wide, thereby eliminating existing “dead zones” or areas of limited penetration by current
market providers.


Municipal Trends
As the deployment of municipal broadband wireless networks proliferates nationally,
municipalities are facing numerous legal and regulatory hurdles. As a case in point, the City of
Philadelphia has been actively engaged in planning for the acquisition and is nearing the start
of the deployment of a City-wide wireless broadband network. Under its initially proposed
business model for the network, the City intended to finance, own, and operate the network.
Subsequent to heavy political infighting and, apparently, a high level of commercial lobbying,
Pennsylvania’s Governor Ed Rendell signed into law a bill that restricts municipalities in
Pennsylvania from offering broadband services for compensation. Philadelphia was exempted
from the restrictions but has modified its strategy to contract with EarthLink to provide a
provider owned network through Wireless Philadelphia; a not for profit agency formed by the
City.


                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 9 of 74
Jupiter Research recently complied information on 83 different municipal wireless initiatives.
Their report, dated June 14, 2005, entitled “Municipal Wireless: Partner to Spread Risks and
Costs While Maximizing Benefit Opportunities” extensively discusses the threats,
opportunities, and alternatives for the use of municipal wireless broadband networks. Some of
the key findings of this Jupiter Research report are as follows:
    • Standalone commercial Internet service is not and should not be the goal of municipal
        networks.
    • Government effectiveness and efficiency are the top priorities and justifications for
        build out.
    • Developing and maintaining a municipal network is costly, at an average of $150,000
        per square mile over five years. On this basis, nearly 50% of initiatives will not break
        even with a benefit stream of $25 per user per month.
    • Governments must work with commercial entities to share the costs and risks of
        municipal networks. Such partnerships offer ISP’s stable anchor tenants, lowered build
        out costs, and customer acquisition opportunities, while governments gain a new way to
        improve business operations, offer City amenities, and improve public safety.
    • For governments, wireless broadband networks enable new applications that improve
        core services, including: better public safety, more efficient transportation systems, a
        more productive field force, and improved regional vitality.
    • The media, policy think tanks, and incumbent telecommunications providers have
        seized on the notion that municipal authorities are attempting to enter the market for
        commercial Internet service as subsidized providers. Out of 83 networks, Jupiter
        Research found only a small fraction (four percent) is dedicated to providing wireless
        broadband to residents and businesses. In areas with a serious lack of available
        commercial services, municipalities are taking on the role as a service provider of last
        resort. The majority of initiatives (63 percent) are aimed at mixed uses—selectively
        supporting commercial and government needs in combination. The remainder (34
        percent) is focused on specialized government applications.
    • Effectiveness and efficiency top the list of goals for municipal networks—64 percent to
        68 percent of initiatives—ahead of universal accessibility, which ranks seventh with
        only 21 percent of initiatives that have it as a goal.
    • Although many municipalities listed incremental revenue as a goal of municipal
        networks, this is overly optimistic. Any revenue will offset expenses in the best case.
    • Building, running, and maintaining a citywide or countywide network to support a large
        number of users is complex. Although city and county authorities have departments of
        information technology, they are not resourced as commercial service providers and do
        not have the necessary institutional knowledge to take on this role.
    • Municipal networks face substantial operational and technological hurdles going
        forward – this will lead to a variety of failures. Jupiter cites some of these hurdles as:
        setting pricing, estimating benefits, unproven scalability, technology change, and
        quality of service and mobility challenges.
    • Municipalities should not be commercial ISP’s with obligations to provide open access
        to broadband. The cost and complexity associated with building and maintaining
        municipal networks is high, and city departments have little institutional knowledge.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 10 of 74
Municipal Network Growth
Over the past decade, broadband data network deployment and use has grown rapidly with U.S.
broadband penetration standing at more than 25% of households. The rising popularity of
Wireless Fidelity, or Wi-Fi, with more than 120 million client devices in existence today, has
created a consumer and municipal demand for anytime, anywhere broadband data access. This
growth in broadband access for households is being dramatically echoed by the growth in
municipal and county-wide broadband networks. The February 2006 MuniWireless list of U.S.
wireless broadband deployments shows growth from July 2005’s 122 cities and counties in the
U.S. with operational networks, Hot Zones, municipal use-only networks, and planned
deployments to a total of 186 installed or planned deployments in February 2006.

The facts show, quite simply, that these networks are today giving citizens and businesses the
low-cost broadband access they want, are saving lives, making first responders more
productive, improving the efficiency of municipal workers and much more. No matter whether
municipal broadband wireless networks are provisioned by a city or a carrier, regardless of
whether their purpose is improved public safety, stronger economic development, or more
broadband Internet access, they are working. Consider the following from customer
experiences:

FACT: Municipal wireless networks make broadband available for solving unique City
scale problems

Portsmouth (UK) is rolling out the PORTAL project which combines real time bus passenger
information delivered via Wi-Fi, with touch screen information and Internet services integrated
within bus shelters, providing a range of great travel services for the 41,000 or so daily
passengers across the city. The project cost £3.5m (partly funded by a £1.5m of grant from the
Department for Transport). It aims to dramatically improve confidence and awareness in public
transport for a land-locked, mainly island city struggling to cope with 1.5 million car transits
per week.

Given that it is a tourist destination and a university town, they’ve got serious traffic problems.
Since there are few major roads in and out of the city, they encourage people to take public
transportation by making it easy to find bus and train info, reducing waiting times for buses,
etc.
Here’s what their new system looks like:

- a wireless broadband network connected to a satellite-based bus tracking system – the first
application of its type in the world - providing not only predicted arrival times, but current
locations for all scheduled bus services in the city; - bus shelters with the very latest in real-
time information display screens and fully integrated information touch screens providing up to
the minute bus arrival times, timetables, free email and a broad range of useful services like
journey planning, train departure information, BBC news and local job vacancies. The unique
print facility providing copies of maps and will be adapted to provide travel cards; - an
accurate, low cost fleet management and scheduling service for bus operators.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 11 of 74
FACT: Municipal wireless networks contribute to lower crime rates.

New Orleans, LA, was well underway with installing a unique citywide public safety video
surveillance network using a metro-scale Wi-Fi mesh network prior to Katrina. According to
City officials, in the initially deployed areas, the innovative combination of high-end camera
technology, Wi-Fi mesh, motion detection and other elements reduced the murder rate by 57%
in six months and auto theft by 25%. Citizens do report feeling safer as a result of the cameras
being in place. More than 160 churches, Neighborhood Watch groups and other civic
organizations had signed up to “Adopt a Camera”. The city planned to rapidly expand the
network to cover the majority of the city with hundreds of cameras scheduled to be deployed.
By working closely with law enforcement and Homeland Security, leveraging Wi-Fi mesh
networking technology and integrating several other key technologies, the City of New Orleans
has rapidly deployed a unique new law enforcement tool at relatively low cost on a network
that can serve double duty for first responder data communications.

FACT: Municipal wireless networks are a valuable public safety tool.

Mobile access to driver’s license, gang and Amber-alert databases, as well as in-field report
writing, submission and retrieval over a metro-scale Wi-Fi mesh network also contributes to
improved public safety. Police officers in San Mateo, CA reportedly now spend 8,000 or more
additional hours a year out on their beats, because metro-scale wireless mesh networks free
them from wired network connections in the office. Safer citizens and more productive first-
responders reap the benefits of this new technology.

FACT: Municipal wireless networks help lower costs and improve service with public
works departments.

In Corpus Christi, TX, a metro-scale Wi-Fi mesh network is automating utility meter reading to
cut costs and improve service. Using the system, the city is now reading 73 water meters per
second - compared to minutes per meter using the old manual process. The city also plans to
enable their building inspectors to use the network; a move the City projects will cut up to one
month out of an average four-month construction cycle by speeding inspections and approvals.


Minneapolis Demographics
Minneapolis is Minnesota’s largest city with an area of 58.7 square-miles. It includes 162,353
Housing units, 382,618 people, and is located in Hennepin County (2000 U.S. Census data).
Residents of the City of Minneapolis are increasingly accessing the Internet from their homes.
An April 2003 survey by Nielsen/Net Ratings entitled “Top Internet Markets”, ranked the City
20th nationwide in terms of household Internet penetration with 68.2%. A September 2004
survey, also by Nielsen/Net Ratings, entitled “Top Broadband and Narrowband Markets”
ranked Minneapolis 15th with 46.9% of the City’s Internet users employing broadband access.
Using the above surveys, the U.S. 2000 Census data, and the 2003 City of Minneapolis
Resident Satisfaction Survey, which show an average of 2.36 persons per household, the
number of broadband households in Minneapolis is estimated to be 30-32% of total households.




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 12 of 74
                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 13 of 74
Minneapolis Population
According to the 2000 Census, Minneapolis had a population of 382,618 with a median age of
31.2 years of age. The median household income is $37,974 and 21% of the residents over 25
years old have at least a bachelor's degree. Minneapolis is ethnically diverse with a population
that is 65% white, over 7% Hispanic, 18% black or African American, over 6% Asian and over
2% American Indian.

Economy and Industry
There are over 12,000 businesses in Minneapolis, which employ more than 216,227 people.
Minneapolis businesses include construction, manufacturing, wholesale and retail
establishments, financial and service businesses, as well as a host of other industry segments.
The chart below presents the 2000 statistics for the number of businesses broken down by
quantity of employees.

            Employee Size      Quantity of Businesses

            1-4                20,980
            5-49               17,012
            50-99               1,352
            100-499             1,046
            500-1,000              78
            1,000+                 97
            Total              40,563


Housing
According to the 2000 Census and the City of Minneapolis GIS system, there are a total of
162,353 households within the City. The quantities by ward (2000) are as follows:

                    Ward     Quantity of Households
                      1                      12,073
                      2                      12,396
                      3                      10,503
                      4                      10,838
                      5                      10,690
                      6                      13,779
                      7                      16,924
                      8                      10,582
                      9                      12,377
                     10                      14,981
                     11                      11,588
                     12                      12,353
                     13                      13,269
                    Total                  162,353




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 14 of 74
4.0 MINNEAPOLIS STRATEGY
In keeping with the City of Minneapolis City Council resolution dated November 1, 2004,
approving the CIO’s request for authorization to initiate a program that will provide Citywide
Broadband Wireless Internet services to all residential, commercial and institutional users and
close the ‘Digital Divide’, the City, under the leadership of the Business Information Services
department, initiated a project to assess institutional broadband data access requirements and to
develop and issue a Request for Proposal for a City-wide Broadband IP Data Access network.
Council further directed staff that the City would fund this initiative through a public/private
partnership.

Request for Proposal Development Process

The City of Minneapolis formed a program organization to provide program oversight and
management. The two Leadership Groups are:

    •   Executive Oversight Committee
    •   Steering Committee

The City of Minneapolis formed five Working Groups tasked with defining business
requirements and applications for a Broadband IP data access network. The five Working
Groups are:
   • External Advisory Group
   • Board Working Group
   • Institutional Working Group
   • Public Safety Working Group
   • Business, Finance and Franchise Working Group

The City of Minneapolis formed two groups tasked with reviewing proposal submissions and
coordinating the vendor due diligence process. The two Evaluation Groups are:

    •   Evaluation Committee
    •   Selection Committee

To ensure that the design of the desired broadband IP data access network would meet the
technical and business requirements of City institutional users, the project team initiated a
series of Oversight, Steering and Working Group sessions beginning in August 2004 and
continuing through November 2004. Each Working Group developed a summary of
recommendations for network services, technical requirements, management requirements,
contract requirements, and potential services for businesses and residents to assist the project
team in subsequent development of the RFP. In addition, members of the project team solicited
input from numerous community organizations, City Council members, and other interested
parties to both inform the community of the project direction as well as to elicit
recommendations for continuing design efforts.




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 15 of 74
The participants and areas represented in the business requirements process are outlined in the
Appendices. The business and applications requirements summaries that were developed as an
outcome to the Working Group process are also included in the Attachments to this document.
It is also important to note that the primary collection point for all input received throughout the
process was most commonly, the RFP document. A copy of this document is also included in
the Appendices.

Public/Private Partnership Approach
While Federal and other State’s telecommunications law is in the state of flux (City of
Philadelphia narrowly navigated new State of Pennsylvania law during the RFP stage of its
project and reports being hampered in some areas of contract negotiation by the Telecomm Act
of 1996), State of Minnesota law does not restrict municipal telecommunications utilities in any
way, except to require a two-thirds majority approval in a referendum if the city intends to
provide telephone service. In an effort to understand more fully how to navigate a potentially
volatile regulatory landscape and work within Council directives, the City’s project team
researched a variety of business models available to City of Minneapolis.

Members of the Working Groups and the project team assessed the various ownership business
models for the broadband network. It was agreed that four distinct business models would be
investigated.

        The City finances, owns, and operates the network.
        The City finances and owns the network, and a private company operates the network.
        A privately company owns and operates the network, wherein the contractor finances
        the cost of design, construction, and operation of the network and subsequently owns
        and operates the network without using any City assets for deployment of necessary
        network infrastructure, or
        A Public/Private Partnership Model, in which a private contractor finances the cost of
        design, construction, and operation of the network and subsequently owns selected
        components of the network and operates the entire network. The contractor leverages
        the City’s installed and expanded fiber network, which the City owns and makes
        available to the private company as well as other available City assets for deployment of
        necessary network infrastructure. The City acts as the anchor tenant on the network and
        has a role in governance

Based upon Council direction, City capital budget constraints, existing bond obligations,
exposure to risk, potential regulatory/legal impediments, and the complexity of network start up
and ongoing operations management, it was ultimately determined that the Public/Private
partnership business model was the most appropriate model for the City to pursue. The public /
private partner will have the use of the City infrastructure (publicly-owned building rooftops,
towers, street lights and other “hanging assets”) for the deployment of the system.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 16 of 74
A public / private partner, by providing the intellectual property, finances and infrastructure to
deploy and operate such an open system, allows City-wide broadband communications that can
address current public safety issues (including Homeland Security compliance issues) and
growing demand within the communities for economical, universal access to high speed
broadband services. From a commercial perspective, the public / private partner will have a
major anchor customer (the City) and greatly reduced operating costs through discounted use of
the City’s equipment hanging assets and reduced fee arrangements. Lastly, the public / private
partner will ultimately be able to offer wholesale services to other providers and retail services
to residents, businesses and visitors. The City seeks a win-win public / private partnership.

Minneapolis can feature the public / private partner’s advanced system in its economic
development efforts. The public / private partner will benefit from the public’s positive
perception of reliability and security connoted by City Government’s utilization of the network
(especially those of pubic safety and Homeland Security). The Fiber Optic infrastructure
remains a City asset and the private partner is fully responsible for the operation of the
network.

Before reaching this conclusion, however, staff examined all alternatives noted above. Of these
stated alternatives, the first to be eliminated was; a privately company owning and operating
the network, wherein the contractor finances the cost of design, construction, and operation of
the network and subsequently owns and operates the network without using any City assets for
deployment of necessary network infrastructure or partnership with the City. This alternative
depends almost entirely upon incumbent carriers or local telephone operating companies taking
the initiative to proactively invest in innovative infrastructure solutions that may in fact
cannibalize current offerings.

The City discussed such options with local and national providers. In many ways, they are a
logical source of complex communications solutions. Their lack of enthusiasm in committing
to such strategic investments and their inability to meet City of Minneapolis targeted price
points and bandwidth requirements for the broadband mobility solutions required to support
new scheduled Public Safety and non-emergency application roll outs narrowed the potential
options examined to the following:




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 17 of 74
                    BUSINESS MODEL ALTERNATIVES EXAMINED

                                                                    PUBLIC
                                   PUBLIC/PRIVATE                 OWNERSHIP/                    PUBLIC
                                    PARTNERSHIP                    PRIVATE                    OWNERSHIP &
                                                                 MANAGEMENT                   MANAGEMENT
Fiber Network Ownership                     City                         City                     City

Construction Costs                     Private Partner                   City                     City
Wireless Equipment
                                      Private Partner
Ownership                                                                City                     City

System Operations &
Maintenance                           Private Partner                   Shared                    City


Customer Service                      Private Partner                   Shared                    City

Technology Replacement Cost
                                      Private Partner                    City                     City

Marketing & Sales
                                      Private Partner                    City                     City

Digital Inclusion
Initiatives                                Shared                        City                     City



        In its evaluation of the remaining three options staff considered the following
        issues/opportunities:

        A Public/Private Partnership model implemented to meet the requirement for City institutional
        application and resident/business and visitor Internet Protocol (IP) based services including
        digital inclusion initiatives provides the following benefits and opportunities:

            •   Allows the City to maintain full ownership of the existing and expanded fiber optic
                infrastructure; a valuable City asset.
            •   No financial risk to the City. The capital investment and issues related to construction,
                start up, systems operations and maintenance, and rapidly evolving wireless technology
                refresh/replacement will be born by the private partner.
            •   The City will not have to be involved in technology for its own sake and can focus on
                managing the business requirements analysis, procurement and contract management of
                Broadband Wireless Network services.

                             City of Minneapolis – Broadband IP Data Access – Business Case
        February 16, 2006                                                                       Page 18 of 74
    •   The City will use its buying power to leverage contractual commitments from the
        service provider including a comprehensive Community Benefits Agreement with seed
        funding, and digital inclusion applications and content solution support from the
        provider.
    •   Allows ubiquitous network coverage to every point in the City at availability levels and
        technical standards designed to meet public safety requirements and guaranteed by the
        provider.
    •   The City will not have to be involved in the marketing, sales, revenue generation and
        7x24x365 customer service required to sustain this business. These areas are clearly not
        our core competencies.


A Public Ownership/Private Management model implemented to meet the requirement for City
institutional application and resident/business and visitor Internet Protocol (IP) based services
including digital inclusion initiatives requires:

    •   The City to fund capital investment in the range of $20 to $25 million by reallocating
        current capital budgets or by issuing new bonds. Issuing 10 bonds for this investment at
        5% would result in annual debt service obligations of $2.6 to $3.2 million. The City
        Charter limits the issue of GO bonds to $15 million per individual project (see page 53).
    •   The City to bear all financial risk. The capital investment and issues related to
        construction, start up, and rapidly evolving wireless technology refresh/replacement
        will be born by the City.
    •   The cost to of Private Management would be incurred from day one when revenues are
        at their lowest point and the City will be required need to cover losses.
    •   The City to ramp up its capabilities to:
                 Become experts in a still emerging and rapidly changing technology.
                 Engage in a new bidding process to acquire and contract for the installation of
                 the technology.
                 Acquire the skills, or contract for the maintenance and upkeep of the technology.
    •   Considering the rapid changes in this emerging technology, ensure sufficient additional
        funding is available for inevitable technology refresh/replacement (both finalist’s
        proposals acknowledge and detail this requirement).
    •   Limit its revenue sources to providing wholesale access only to Internet Services
        Providers (ISP) and Wireless Internet Service Providers (WISP), or bear still further
        investment to ramp up to being a full fledged ISP/WISP.
    •   Establishing and acquiring the necessary start up expertise to successfully break into an
        existing and increasingly sophisticated and competitive private sector arena.
    •   Establishing and acquiring the necessary sales and marketing skills to solely provide
        these services which are a critical element of risk management in this model.
    •   Establishing and acquiring the necessary customer service skills to solely provide this
        critical element of the business, in addition to solely providing all systems operations
        and management services.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 19 of 74
    •   Establish, fully fund and solely manage a comprehensive community benefits program
        that ensures the implementation of digital inclusion initiatives for underserved
        populations, and appropriate content development services for limited English speaking
        populations.
    •   Be prepared to navigate and litigate potential law suits by existing telecommunications
        providers related to claims of unfair competition and address emerging legislation, both
        at the Federal and State level, which is being written to prohibit or significantly curtail
        public ownership of telecommunications networks.
    •   Allows ubiquitous network coverage to every point in the City at availability levels and
        technical standards designed to meet public safety requirements and guaranteed by the
        City.
    •   The City will have to provide the marketing, sales, revenue generation and 7x24x365
        customer service required to sustain this business. These areas are clearly not our core
        competencies.
    •   Allows the City to maintain full ownership of the existing and expanded fiber optic
        infrastructure; a valuable City asset.


A Public Ownership/Public Management model implemented to meet the requirement for City
institutional application and resident/business and visitor Internet Protocol (IP) based services
including digital inclusion initiatives requires:

    •   The City to fund capital investment in the range of $20 to $25 million by reallocating
        current capital budgets or by issuing new bonds. Issuing 10 bonds for this investment at
        5% would result in annual debt service obligations of $2.6 to $3.2 million. The City
        Charter limits the issue of GO bonds to $15 million per individual project (see page 53).
    •   The City to bear all financial risk. The capital investment and issues related to
        construction, start up, and rapidly evolving wireless technology refresh/replacement
        will be born by the City.
    •   The City will have to be involved in technology for its own sake and can not focus on
        its core competency of managing the business requirements analysis, procurement and
        contract management of Broadband Wireless Network services.
    •   The cost of all sales and marketing, customer support, systems operations and
        management would be incurred from day one when revenues are at their lowest point
        and the City will be required need to cover losses.
    •   The City to ramp up its capabilities to:
                Become experts in a still emerging and rapidly changing technology.
                Engage in a new bidding process to acquire and contract for the installation of
                the technology.
                Acquire the skills, or contract for the maintenance and upkeep of the technology.
    •   Considering the rapid changes in this emerging technology, ensure sufficient additional
        funding is available for inevitable technology refresh/replacement (both finalist’s
        proposals acknowledge and detail this requirement).
    •   Bear the investment to ramp up to being a full fledged ISP/WISP.
    •   Establishing and acquiring the necessary start up expertise to successfully break into an
        existing and increasingly sophisticated and competitive private sector arena.



                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 20 of 74
    •   Establishing and acquiring the necessary sales and marketing skills to provide these
        services which are a critical element of risk management in this model.
    •   Establishing and acquiring the necessary customer service skills to provide this critical
        service, in addition to systems operations and management services.
    •   Allows ubiquitous network coverage to every point in the City at availability levels and
        technical standards designed to meet public safety requirements and guaranteed by the
        City.
    •   The City will have to provide the marketing, sales, revenue generation and 7x24x365
        customer service required to sustain this business. These areas are clearly not our core
        competencies.
    •   Establish, provide seed funding, and solely manage a comprehensive community
        benefits program that ensures the implementation of digital inclusion initiatives for
        underserved populations, and appropriate applications and content development
        services for limited English speaking populations.
    •   Be prepared to navigate and litigate potential law suits by existing telecommunications
        providers related to claims of unfair competition and address emerging legislation, both
        at the Federal and State level, which is being written to prohibit or significantly curtail
        public ownership of telecommunications networks.
    •   Allows the City to maintain full ownership of the existing and expanded fiber optic
        infrastructure; a valuable City asset.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 21 of 74
                                 RISK/REWARD PROFILES

                                                             PUBLIC
                              PUBLIC/PRIVATE               OWNERSHIP/                  PUBLIC
                               PARTNERSHIP                  PRIVATE                  OWNERSHIP &
                                                          MANAGEMENT                 MANAGEMENT
Public Financial Risk                Minimal                      High                       High


Private Financial Risk                 High                     Minimal                      None


                                 Fiber Network &          Wholesale Access           Wholesale & Retail
City Revenue Sources
                                 Revenue Sharing               Only                    ISP Services



Private Revenue Sources        Wholesale & Retail         Management Fees
                                                                                             None
                                 ISP Services



        Pilot Process
        The City is in the process of planning with the two finalists from the RFP process to conduct
        two pilot projects in separate 1-1.5 mile areas of the City. The two finalist companies are now
        in the design and permitting process in preparation for the near-term pilot projects which will
        be used to test the broadband IP data access network for City institutional uses and serve as a
        focal point for continued community open house events and Computer Technology Center
        demonstrations.


        EarthLink – Near North Pilot Area Map (approximate):
        US Internet – Cedar Riverside Pilot Area Map (approximate):




                                (Please refer to the following two pages)




                            City of Minneapolis – Broadband IP Data Access – Business Case
        February 16, 2006                                                                       Page 22 of 74
                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 23 of 74
                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 24 of 74
The recommended pilot project sites have been selected to provide a cross-section of the types
of City areas that will be served by the ultimate City-wide broadband network deployment. In
addition to immediately demonstrating the City’s interest in deploying broadband technology,
the pilots will demonstrate “proof-of-concept” for both the technology itself and effective
support for City institutional requirements. The pilot sites will also demonstrate the City’s
commitment to promote efficiency for mobile and other City workers, deploy the latest
technologies to foster economic development and enhance City competitiveness, and create
community inclusion in the digital age.

The cost of all pilot projects will be borne by the two finalists selected during the RFP process.
The pilot projects will not only demonstrate the capabilities of the finalist vendors but also
prove the relative effectiveness and potential superiority of the technologies the individual
vendor finalists deploy.


Network Deployment Strategy
The following is the project approach that has been followed for the City of Minneapolis
broadband IP data access network implementation:

        Phase 0 – Planning, Budget and Requirements Definition
        Phase 1 – Development of the RFP for a Public/Private Partnership
        Phase 2 – Pilot Installation of Broadband Network
        Phase 3 – Contract Negotiation and Citywide Launch
        Phase 4 – Broadband Network Ongoing Operations
        Phase 5 – Upgrade Planning


It has been estimated that a full metro-scale wireless broadband access network would require
deployment of approximately 1100-1300 Wi-Fi cells/access points in a mesh network. These
Wi-Fi cells will be linked to tower antennas which in turn will be “wired” to the backhaul
network for ultimate connectivity to the City/vendor’s Internet uplink facility.

According to the City of Minneapolis Assessor database, the GIS database, and other City
sources, the City has the following assets:
   • City of Minneapolis Public Works Properties – 579
   • City of Minneapolis MCDA Properties – 695
   • City of Minneapolis Leased Parking – 22 ramps, 8 parking logs and about 6,350 parking
       meters
   • Parks & Recreation Board – 476
   • Minneapolis Library Board – 206
   • Minneapolis Board of Education – 62
   • Minneapolis Public Housing Authority – 747
   • Total of 2,576 sites




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 25 of 74
Streetlights
There are 28,000 wooden streetlight poles deployed throughout the City that are owned by
Excel Energy. The Excel-owned poles serve all areas of the City except the downtown core
area. The Excel streetlights are individually powered and equipped with photoelectric “eyes”.
The City has worked with Xcel to coordinate access for proposers to poles for an added cost to
the private partner per pole/per year.

The City’s downtown core area is served by approximately 17,000 metal streetlight poles
owned by the City. About 50% of these poles are 12 feet high and the other 50% are 30 feet
high. The City streetlight poles are not individually powered, but rather are powered from
approximately 800 service cabinets. The service cabinet range is a low of 10 feet to a high of
800-1,000 feet.

Traffic Lights
The City has 804 traffic lights throughout the City and they are predominantly hung at a height
of 12 feet. An undetermined small amount of traffic lights are hung at a height of 30 feet.

Parkway Lights
The Park Board is responsible for approximately 2,400 parkway lights. Some 700 of these are
not able to be leveraged for hanging wireless devices.

Back-Haul Requirements
With the focus on selecting the right access technology, many wireless network operators
overlook another important part of their network--backhaul. Once customer traffic reaches the
access point or subscriber hub, consolidated traffic needs to be reliably and cost-effectively
transported back to switches and the main Internet gateway. These transmission links need to
be reliable since they carry traffic from a large number of subscribers. The City of Minneapolis
will provide access to its Fiber Optic infrastructure as a means to connect these wired access
points to the main backhaul transport facilities.

Retail Pricing
The two Offerors that have been selected as finalists to move to the pilot demonstration phase
of the project, Earthlink and US Internet, are both long-term Internet Service Providers that
offer a wide range of service categories and products for the institutional, commercial, and
residential markets. While the ultimate retail pricing structure will be determined in
negotiations with the ultimately selected contractor, both of the finalists are planning to offer
fixed wireless high-speed broadband Internet access to residents for their basic service level.
Premium offerings providing higher bandwidth connectivity will also be available. In addition,
both finalists have offered to provide attractive discounted monthly pricing to low-income
subscribers. Retail pricing for subscribers includes various levels of support for web hosting
services, e-mail accounts, anti-virus protection, and unsolicited bulk e-mail filtering.




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 26 of 74
Wholesale Pricing
The selected provider will make their proposed network solution open to other ISP’s and
WISP’s. Under this wholesale arrangement, the provider will offer wholesale pricing to other
providers in an open environment. As an example, an open access business model provides
open access to qualified service providers at wholesale rates. It is expected that the ultimately
selected broadband network contractor would offer wholesale prices to all qualified service
providers enabling residents and businesses will be able to contract with any customer provider
that chooses to contract for wholesale services on the network.

Wireless Minneapolis Community Engagement

Community Engagement Objectives
•   Engage Minneapolis residents and communities in a discussion about the benefits and
    opportunities of a wireless, broadband network that reaches every corner of the City.
•   Collect ideas and feedback from Minneapolis residents, communities and other
    stakeholders about the Community Benefits package that the City of Minneapolis should
    advocate for during negotiations with a vendor.
•   Build a level of understanding about Wireless Minneapolis among the City’s communities,
    stakeholders and the general public so that they are aware of the opportunities to participate
    in a public dialogue about Community Benefits for the project.
•   Utilize strong community engagement strategies to reinforce transparency about the process
    and build enthusiasm for the opportunities that Wireless Minneapolis can bring to all the
    city’s communities.

Audiences
    •   Residents
    •   Neighborhood Organizations
    •   Community & Business Leaders
    •   Non-profit Community & Social Service Organizations
    •   Community Technology Center Users, Volunteers & Staff




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 27 of 74
Community Engagement – Opportunities for public participation

Experience Wireless Minneapolis & Give Us Your Ideas
        The Wireless Minneapolis community engagement plan calls for seven public
        meetings/open houses (detailed below). The meeting locations will be spread out
        geographically through the city; each will be open to the public at large (rather than
        being limited to area residents).
        Opportunity #1:    Neighborhood Organization/Leadership Meeting (Conduct prior
                           to pilot project construction). Invite neighborhood organization
                           leaders (board, staff … general public is welcome) to attend a
                           meeting to learn more about Wireless Minneapolis and the upcoming
                           pilot projects. Begin discussion – and collect feedback and input
                           about Community Benefits the City should advocate for in
                           negotiations.

        Opportunity #2     Community Meetings (2) (Conduct prior to launch of pilot project).
                           Invite the public to attend a meeting to learn more about Wireless
                           Minneapolis and the upcoming pilot projects. Begin discussion –
                           and collect feedback and input about Community Benefits the City
                           should advocate for in negotiations.

        Opportunity #3     Pilot Projects – Open Houses (2) (Conduct during pilot projects).
                           Invite the public to attend a meeting to learn more about Wireless
                           Minneapolis, see demos of the system (what we are testing) and
                           discuss/provide feedback and input about Community Benefits the
                           City should advocate for in negotiations.

        Opportunity #4     Community Meetings (2) (Conduct after the pilot project but prior
                           to contract negotiations). Invite the public to attend a meeting to
                           learn about the status and next steps of Wireless Minneapolis; to hear
                           a presentation about the Community Benefits ideas the City has
                           received and to provide feedback on Community Benefits.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 28 of 74
Tell Us What Is Important to You
        Opportunity # 5   Online Comments & Feedback (Currently in operation; ongoing)-
                          Encourage folks to provide ideas and feedback on Wireless
                          Minneapolis’ Community Benefits through a comment box in the
                          Wireless Web site.

        Opportunity #6    Wireless E-mail (Currently in operation; ongoing):
                          wireless@ci.minneapolis.mn.us. Promote this e-mail address using
                          all our communications vehicles as a way for the public to provide
                          comments, ideas and feedback on the Community Benefits
                          agreement. This address was used to invite the City’s 81
                          neighborhood organizations and groups to the Ways and Means
                          meeting on Feb 21, 2006.

        Opportunity #7    Community Benefits survey (beginning ASAP). Promote the C-
                          CAN/Community Technology Empowerment Project on-line survey
                          with a link from the City of Minneapolis Web site. Encourage
                          participation in the survey.

        Opportunity #8    Distribute “idea boxes” and paper copies of C-CAN surveys at City
                          government, Park, Library buildings, Neighborhood Organization
                          offices, and Community Technology Centers. (Set up prior to launch
                          of pilot projects) Encourage feedback.

        Opportunity #9    Youth Perspective. (Begin planning prior to pilot construction;
                          conduct through process). Solicit comments, ideas and feedback
                          from young people through public schools. This needs further
                          exploration to determine if we can have dialogues (forums) at public
                          schools (ideally a role that elected officials can play) or if we must
                          rely on Idea Boxes set up at central locations in schools.

        Opportunity #10 City Employees Survey via CityTalk and Survey boxes (Beginning
                        during pilot projects). Encourage employees to submit ideas about
                        how Wireless Minneapolis can help them do their work more
                        efficiently and effectively and as residents how they think wireless
                        technology could be used to make Minneapolis a more attractive
                        place to live, to work, to go to school and conduct businesses.




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 29 of 74
Learn About Wireless Minneapolis & Give Your Comments/Ideas/Feedback
        Opportunity #11 Wireless Minneapolis Web site
                         www.ci.minneapolis.mn.us/wirelessminneapolis with updated
                         information about Wireless Minneapolis initiative and the
                         Community Benefits Agreement. This also features a way to sign up
                         to receive updates on Wireless Minneapolis (see below) and to
                         provide comments and feedback. (Live on Feb. 15; ongoing).

        Opportunity #12 Wireless Minneapolis e-update list. Encourage people to sign up to
                         receive e-mail updates on Wireless Minneapolis, including
                         information about upcoming meetings and public events. This
                         system is currently in operation with 62 subscribers (subscribers
                         received an announcement about the Ways and Means meeting on
                         Feb 21, 2006).

        Opportunity #13 Keep the Public informed of survey results and public comments.
                         Maintain a summary of meetings, results of surveys, and public
                         comments posted on the Wireless Minneapolis Web site.




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 30 of 74
5.0 REQUIREMENTS, DESIRED SERVICES, AND EXPECTED
BENEFITS

There are three major target markets for the City of Minneapolis broadband wireless network:
Institutional (Government), Residential, and Business. In addition, the wireless network will
also serve as a desirable City amenity stimulating interest in the City and providing
convenience for citizens and visitors alike. Each of these target markets is addressed in the
sections that follow below.

Public Safety
For several years, police departments have used low-bandwidth wireless systems to check
suspect IDs and vehicle license plates. An example of these wireless systems is the Cellular
Digital Packet Data (CDPD) network. This type of network supports a theoretical throughput of
19.2 Kbps of symmetrical bit rate and actual throughput of about 9-13 Kbps. Many applications
used by the City’s mobile work force require that similar amounts of data be both “unlinked”
(from the client device to the base station) and down linked. This early dial-up modem speed is
simply not enough to support high-bandwidth applications such as transmission of mug shots
to, and photos from, police patrol cars. While there are now newer technologies available, such
as 3G and 1xRTT, these systems all inherently limit actual throughput due to the robust
overhead (error correction and coding) required to function at low signal levels. Wireless
broadband, on the other hand, was designed for wireless LAN applications with high
symmetric throughput to low speed nomadic clients.

Public safety services have an obvious need for such high-speed mobile data services to allow
police, fire, and emergency personnel to access on-line data (e.g. to link to criminal databases
and automobile registry data) and communication critical data in real-time (e.g. to relay
medical information from an ambulance to the hospital). With the advances in communications
technology and, more recently, with the explosion of interest and services based on wireless
LAN technologies operating in the unlicensed spectrum such as Wi-Fi, there is growing interest
in implementing public safety systems using such technologies.

Police Departments can now have always-on connectivity in patrol cars – police officers will
have real-time access to a multitude of relevant information such as perpetrator details, mug
shots, identification lineups, and fingerprints. Extensive access to critical information can
speed up investigations and help prevent further incidents by keeping peace officers in the field
with real time information availability. For instance, using a broadband link to security
cameras, Police officers will be able to gather critical information about a location prior to
risking life and limb by entering a situation blindly. Additionally, there will be less paperwork.
Through rapid auto-completion of data, forms and paperwork can be filled out on the fly and
would not require additional data entry. This remote capability will cut down on officers’ time
in the office thus increasing “street time”. Through utilization of the potential data
communications within the Hot Zone, public safety officers should realize greatly enhanced
safety and efficiency.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 31 of 74
Institutional Services
Broadband wireless connectivity is the solution to making emergency, public safety, and
generally mobile City workers highly effective. Non-mobile staff in City buildings will also
benefit from the ability to access the Internet via a laptop or PDA from any room in a City
building. Migrating from current low-speed data connections to wireless broadband will enable
mobile, in-car access to the Amber Alert sex offender database with full photo resolution, as
well as rapid access to automobile registry systems. The City will also seek to integrate the
broadband wireless network with current 700 MHz public safety systems and to interoperate
with other regional jurisdictions. Descriptions of the capabilities and benefits that will accrue to
various City entities, whether mobile or non-mobile, follow below.

Mobile City Workers-Non-Public Safety
There are many departments within the city that have mobile workers other than public safety
related workers. Examples include Public Works project supervisors, social workers, building
code inspectors, health inspectors and the like. Outfitting such government workers with
wireless devices (laptops or PDAs) will enable them to send data in real-time back to
government computers as well as to download instantly information needed to successfully
complete the job at hand. In addition, non-mobile city workers such as judges, lawyers, and
Council members can maintain constant access to information via the broadband network using
secured technologies such as VPN’s. Laptops and hand-held devices could be used in any room
or area of City Hall without the need for tethered connections.

Parking Monitoring and Management
The City of Minneapolis operates a number of public parking facilities throughout the City. In
addition, parking enforcement officers patrol metered street spaces to enforce time limits and,
when necessary, issue tickets. The implementation of a broadband wireless network can assist
in the monitoring of parking facilities and improve the productivity of parking enforcement.
Consider a traffic officer who uses a PDA to collect data on illegally parked cars and then uses
a wireless connection at the station house to download the information to automate issuing
tickets and reduce data entry errors. If this system is expanded to support mobile broadband
data while the traffic officer is on patrol, an automatic cross-check can be made of licenses to
see if there are any outstanding warrants or other problems that require special action (e.g.
booting or towing the car).

Parking Statistics
The City has provided the following information regarding its Parking Enforcement operations.
There are approximately 6,200-6,500 parking meters deployed on City streets. The City issues
approximately 270,000 parking tickets per year providing a revenue stream of about $2 million
annually. Parking enforcement personnel utilize about 50 AutoSite hand-held ticket writer
devices that are not currently Wi-Fi enabled. The newest models of these devices are Wi-Fi
enabled. If these devices were Wi-Fi enabled, parking enforcement personnel could have
direct, real-time access to appropriate City databases. Such database access would enable City
staff on the streets to determine whether a car with a disabled person sign was actually the car
to which the sign was issued, to run auto license plates to determine if a car is stolen, or to see
whether the person to whom the car/plates are registered is a “scofflaw”.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 32 of 74
Separately, although the current parking meters are not digital, if they were, they would be able
to send a Wi-Fi signal to a hand-held device alerting the nearest traffic enforcement officer that
a meter time had expired.

The City also owns and operates eight parking lots and 22 parking ramps, of which three are
automated. There are approximately 25,000 parking spaces within this complement of ramps
and lots. The City Impound lot yields approximately $5 million in annual revenue. There are
some 2,000 surveillance cameras deployed throughout the 22 ramps. The City has substantial
investment in fiber and other hard-wired connectivity to the parking ramps for digital audio and
video, emergency call stations, revenue collection booths, and variable message signs. For this
reason, the City would be reluctant to expend more capital to add wireless connectivity to
existing ramps, however the City sees the benefit of adding wireless connectivity in the future
to any newly constructed ramps.

Taxis
There are currently 397 registered taxis serving the City of Minneapolis. All taxi inspections
are now handled using manually completed forms. It has been suggested that, if taxi inspectors
were to be equipped with Wi-Fi enabled hand-held devices, such inspections could be
completed in the field with the data transmitted real-time to appropriate City databases.

Public Works Applications
A wireless broadband mesh network will enable the City to establish remote monitoring of
facilities. This will save time and money by monitoring and controlling mechanical devices,
valves, pumps and signs from a central location. The City can use remote monitoring (or
"telemetry") to improve its operating efficiency, equipment protection, and customer service.
Remote monitoring allows savings through reductions of travel and manual information
gathering. Staff can focus on managing exceptions and preventative maintenance thus
maximizing productive time of field employees and the useful life of equipment. Early
detection of malfunctions can prevent more costly problems from occurring.

Remote monitoring solutions can use wireless network connections to obtain data from distant
or remote locations, allowing the user to store or analyze data in a central location. Data can be
transmitted at pre-determined intervals, upon request, and/or when alarm thresholds are met.
Timely and consistent data collection can improve the accuracy and validity of analysis.
Moreover, there would be an increase in the accuracy of metering. Through use of telemetry,
there will be a reduction in human error as data is sent electronically – certainly, there would be
increased efficiency in the high-low readings.

Data can also be processed through a variety of systems (billing, etc) without additional data
entry (from hard copy forms to digital). The Public Works department can realize substantial
cost savings on the deployment of their limited resources. As additional bandwidth for the City
offices will be provided, multiple 56k dialup connections can be replaced by high-speed
broadband connectivity.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 33 of 74
Video Surveillance
Security cameras are designed to transmit images every one to four seconds. Surveillance
cameras are designed to transmit video or a collection of images every second. Security
cameras are used to detect motion and events, while surveillance cameras are used to
proactively monitor locations in lieu of having onsite personnel.

Wireless cameras operate on the Wi-Fi or 802.11b spectrum, enabling them to be fully
compatible with a broadband wireless mesh network and high-speed Internet connection.
Either type of camera could serve as both a deterrent and an investigational tool for public
safety in City parks, business environments, and parking lots, and can be used to help reduce
the occurrence of vandalism and other crimes as part of the City’s Safe Zone program.

As wireless technology cameras can be installed and removed quickly, the City could also
deploy wireless security cameras at public events anywhere in the City. Stadiums, arenas, and
parks could all have Wi-Fi available for the public, police, fire department staff, and other
government workers.

Graffiti Management
The proliferation of graffiti on both public and private buildings in the City of Minneapolis has
become a major problem for both building owners/managers and the City itself. The City
expends significant capital to remove graffiti, yet the cleaned building very quickly becomes an
enticing target again for the same or a different graffiti “artist”.

As noted in the section immediately above, wireless cameras can serve as an effective deterrent
to vandalism. It is possible to install a wireless point and tilt camera equipped with a motion
sensing mechanism so that the camera is pointed at a frequently used graffiti site. When motion
is detected at that site, the camera will begin to operate and will wirelessly transmit video to the
appropriate police response location.


Desired Residential Services
Residences in the City will be able to acquire broadband Internet access at speeds of 1 Mbps.
This service will be deployed in a later phase of the network deployment. Ideally, the City’s
private partner can capture two segments of the residential market. The first segment is
comprised of households that are unable to acquire cable or DSL services at their location.
Typically these customers currently opt for 56k dial up services or no service at all, with a
select few utilizing DSS (Digital Satellite Systems) for broadband access.

By providing broadband speeds at highly competitive rates to typical local dial up pricing or
where DSL’s limited range from the telephone company’s Central Office will not allow
residents to acquire DSL, the private partner can capture a generous portion of the available
market. The second segment to capture is more difficult to achieve. It consists of customers
who currently use DSL or cable for broadband Internet access. The private partner would
entice these customers to their broadband offerings on the basis of ease of use, convenience,
and portability, no annual or multi-annual contractual agreements, and pricing.



                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 34 of 74
Desired Business Services
The City will foster economic development and project an image of a technologically
advanced, business-friendly community through the deployment of the broadband IP data
access network. Most Minneapolis area commercial businesses utilize wired services from the
local telephone company for Internet access. These access links range from dial-up service and
DSL to full T-1 or T-3 service. Wireless access provided via the planned municipal broadband
network can serve as a competitive replacement for current wired services typically at reduced
monthly recurring cost. In addition, local businesses may wish to retain their wired service link
to the local telephone company and acquire broadband wireless access as a recovery option in a
potential disaster situation.

A lower cost for technology infrastructure enhances the capabilities of commercial enterprise to
exploit the features and benefits through utilization of high-capacity bandwidth. Hotels,
conference centers, new business parks, and malls can all utilize wireless broadband without
having to build in extensive wiring and trenching. Fewer wires and cables on poles improve
the impact on the environment as well. As the wireless broadband system is compliant with
FCC rules and regulations, it is compatible with pre-existing systems. New businesses can use
existing technology that may have been built into their systems to seamlessly integrate into the
city’s technology sector. Lower costs for broadband Internet connectivity will stimulate
business growth.

In many cities nationally as in Minneapolis, heavily trafficked retail establishments such as
bookstores, restaurants, cafes, and coffee shops, typically in downtown areas, have begun their
own grass roots efforts to deploy “Hot Spots” for wireless Internet access. Customers with
wireless-equipped laptops and PDA’s can easily access the Internet through a base
station/access point deployed in the retail facility. The Minneapolis broadband wireless
network could facilitate economic development for the city and increased customer traffic at
city businesses. A “hot zone” in a downtown area that encourages increased shopping traffic
offers public goods benefits since stores that do not support access but are in the coverage area
and benefit from the traffic will still derive benefit.


Broadband as City Amenity for Residents and Visitors
The City broadband access network can also be integrated with the convention center to
provide paid temporary wireless services to exhibitors and free wireless access to convention
providers and assigned City workers. This application makes the City a more attractive
convention destination, especially for high-tech conventions, and simultaneously increases
convention attendee spend while in the City. The broadband IP data access network will also
provide broadband Internet connectivity for City residents using such municipal facilities as
libraries, mass transit, light rail, City parks, and other public spaces.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 35 of 74
Impact of Wireless Minneapolis
The City expects to receive myriad benefits from the deployment of the broadband IP data
access network. The City will be able to experience numerous communications improvements
from the deployment of the network and it fully expects to reap the following benefits over
time:
   • Reduced costs for both emergency and non-emergency wireless communications while
       enabling a greater number of City of Minneapolis mobile workers to have information
       access to citizen requests and work orders from the field
   • Reduced costs and improved level of services for Public Safety employees protecting
       Minneapolis residents, utilizing a City-wide high-speed broadband infrastructure
   • Increased accessibility thereby improving productivity, responsiveness, and public
       safety
   • Greater mobile data access and interoperability with other City emergency
       communications systems, e.g. 800 MHz radio communications system integration and
       integration with the Police Records Management System,
   • Real-time video surveillance and monitoring of high traffic, high crime, and frequent
       graffiti sites
   • Rapid, mobile access to Amber Alert information
   • Rapid, mobile access to Mug shots, in-field photo lineups, fingerprints, DMV records
   • Public Works-Remote monitoring of utility meters
   • Mobile database access for city building inspectors, health inspectors, social workers,
       and maintenance workers
   • Mobile Internet connectivity for City Hall employees, judges, lawyers, etc.
   • Traffic management-video traffic monitoring
   • Parking monitoring and management-field access for parking enforcement personnel
   • Maintain the image of the City of Minneapolis as a leader in providing services to its
       citizens and business, both in the State of Minnesota and in the nation as a whole
   • Community-based web “splash pages” with information regarding community services,
       events, etc.
   • Internet-based, streaming video broadcasts of meetings from City Hall, schools, parks,
       and libraries; community events, outdoor concerts, and sporting events
   • Contractor support for City Community Technology Centers and community
       organizations

The City of Minneapolis is using its market position to compel a business to build a fast,
reliable network that offers benefits to all our communities, as well as those who work, visit, or
attend school in Minneapolis.

Central to our negotiations is the requirement that the vendor provide the same level of
coverage in every neighborhood throughout the City. As part of the contract negotiations, we
will also advocate:
•   Free broadband and wireless service at each of the city’s Community Technology Centers
    (which today number about 100).
•   That the private vendor contributes to digital divide initiatives (we will engage in
    discussions in the community about what efforts will help close the digital divide).


                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 36 of 74
•   Free wireless access at City of Minneapolis parks.
•   Free baby broadband (1 to 3 meg access) access at (to be determined?) public spaces
    throughout Minneapolis (how can we define “public spaces”).

While it is premature for the City quantify the projected savings that will result from
deployment of the broadband IP data access network, other cities that have already installed
municipal broadband networks have experienced savings through the reduction of telephone
company links and have realized savings due to a reduced requirement to expand municipal
staff to meet defined goals. The City of San Mateo, California, which has had a municipal
broadband network installed to serve its police department since early 2005, has discovered that
its police now spend much more time in the field where they are needed, policing the streets
and performing vital services for the residents and visitors of San Mateo. The City states that
their ability to more quickly and efficiently solve crimes within their borders has already been
proven and future network and application enhancements will continue to improve the
investigative and preventative policing capabilities of the department. The end result is a much
safer community without the need to increase the number of patrols on the street.

The City of Corpus Christi, Texas installed a wireless mesh network initially to more
effectively automate its reading of gas and water meter data and the transmission of this data to
the city’s Utilities Business office system. City management has stated in industry conferences
that is now more effectively receiving and transmitting meter reading data at reduced cost.

The Mayor of Minneapolis, in an article recently published in the Minneapolis Star Tribune,
stressed the City’s effort to avoid the type of legal minefields encountered by Philadelphia
when he stated:

        “We are the first city to use our position in the market to compel business to provide a
        service to everyone. The city of Philadelphia originally proposed a city-owned system.
        But after seeing our model, they're following in our footsteps. In doing so, they're
        avoiding further legal battles with industry providers who claim that tax-subsidized
        wireless service is unfair competition. We've avoided those legal problems altogether.

        Our approach is groundbreaking. A strictly private-sector, "hands off" approach would
        mean that the city wouldn't increase efficiency and that lower-income neighborhoods
        inevitably would be left underserved and unconnected. A strictly public-sector approach
        is another "do nothing" option, because it would have the taxpayers paying at least $25
        million to build a network that could be obsolete the day it goes live. Our whole 2006
        capital budget for roads, bridges and everything else we build is $23 million.

        Whichever vendor gets the contract in the end, they, not taxpayers, shoulder the risk of
        ensuring that their technology solutions are reliable, that the system is continually
        updated to keep up with emerging technology and industry standards and that they
        work effectively with other Internet service providers and content providers, as well as
        operate this network as a profitable venture.”

Our society and economy is increasingly reliant on information technology (IT). Many low-
income communities are isolated from recent technological advances and do not have access to

                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 37 of 74
personal computers, the Internet and the interactions and opportunities these technologies
provide. This experience defines the “digital divide” – the separation between those who do
and those who do not have access to information technology.

We must work to understand the impact technology transformation has on low-income
communities with two key questions guiding our efforts. First, how might existing and
emerging technologies be used as a tool to support community-building efforts? Second, can
we draw from the decades of experience in the community-building field to inform current
efforts to bridge the digital divide?

The current focus of policymakers, community activists and IT industry leaders is largely to
create policies and programs that provide low-income communities with training and access to
information technologies. Access for what purpose? The policy dialogue must go beyond the
current access-centered paradigm. The next steps for IT policy and practice must support the
creation of local content and build the technology capacity of community based organizations.

Our community technology policy agenda should include:
   • Promotion of universal access and training;
   • Technology capacity building for community based organization;
   • Creation of community driven content; and,
   • Development of new applications and expansion of relevant local content

Community based organizations are rich storehouses of local information, but they frequently
lack the technology capacity to either use this valuable resource themselves or to share it with
other community serving organizations. Those who are using it to support their work and
extend their impact have developed proficiencies in:
    • Advocacy and online organizing;
    • Community information clearinghouses;
    • Networking and online communities;
    • Innovations in service delivery;
    • Interactive database development; and,
    • Community mapping.

In Minneapolis, a number of community technology centers and technology assistance
providers have been established as a result of programs and policies initiated by Federal
Government, State of Minnesota, Hennepin County, City of Minneapolis and directed
philanthropy. If one goal is to strengthen neighborhoods using the power of information
technology, it is critical to understand the importance of the existing infrastructure and its
connection to local constituents. Our community based organizations are the gate keepers of
local information and are, therefore, the appropriate actors for creating local content that is
relevant, useful and available online.

Local content – relevant and meaningful community and neighborhood based information on
topics such as employment, housing, community events, education, childcare and social
services – must be able to be understood by limited-literacy users, published in appropriate
languages and offered in culturally appropriate ways.



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As we develop policies and programs to bridge the digital divide, we must insure that these are
linked to broader strategies for social change in two ways. First, we must allow the wisdom
and experience of the existing community infrastructure to guide our efforts. Second, we must
focus our efforts on using emerging technologies as a tool to strengthen and support our
existing community infrastructure. Strategies that promote a culture-of-use in community
based organizations, and the constituencies they work with, are critical. Some activities that
will promote a culture-of-use include:
    • Developing stronger and deeper links between technologists and community builders to
        that awareness of technology’s impact is better understood;
    • Creating an inventory of community based applications, along with technology
        descriptions, that illustrate how IT tools can be used as a tool for social change; and,
    • Creating online and offline opportunities for community based organizations to share
        knowledge and experience around developing content and applications.

Many local communities around the globe have demonstrated that Internet technologies can be
an effective tool in boasting local economic and social development. As a result, the social
appropriation of Internet technologies is emerging as a research and practice called
“Community Informatics.” Community Informatics is the application of information and
communications technologies to enable community processes and the achievement of
community objectives. International researchers and funding agencies have moved towards the
term Community Informatics Systems (CIS) as a parallel for Management Information Systems
(MIS).

Community Informatics Systems focus on distributed systems and not aggregated ones. CIS is
also based on a premise of active interaction in the development, use and appropriation of the
systems. Other significant aspects of the “Community Informatics” approach include the
development of strategies for the analysis of community and social requirements for designing
community based processes of technology appropriation and planning; technology program
planning; and, outcomes evaluation research.

In preparing for the next phase of the emerging information and communications technology-
enabled environment, a new social contract is required that binds and partners civil, private and
public sectors in delivering social inclusion and social cohesion in ways that strengthen
economic, social and cultural benefit in the information society. City of Minneapolis should
represent itself as a facilitator and active member of this network of community leaders.

The financial stability of community information and communications technology initiatives
needs policymakers and funding approvers to acknowledge their long-term responsibilities and
involvement. “Project culture” and “social experiment” approaches are incompatible with
meaningful attempts to build and sustain active and healthy communities in the information
society. Communities themselves will ultimately determine the sustainability of community
technology. Active participation of a local community – at every stage of the long term
responsibilities and involvement life cycle – is essential if the community is to identify with
and develop a sense of ownership of an initiative. Active citizenship, human-centered design
and communal participation from the early planning stages are therefore prerequisites for
sustainability.



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A human-centered approach to community informatics recognizes the realities of community
life by attempting to incorporate them into the design, implementation and development of
community technologies. It is important to evaluate the tensions that exist between the
competing social agenda of funding approvers, technologists, community and voluntary groups,
public sector agencies, researchers, and communities themselves. Within a community policy
context, this requires an understanding that no two communities are alike. Each has different
norms and cultural value systems historically constructed as a result of social circumstances.
Local information society policies must acknowledge and reflect this diversity.

In the design process, technology should be viewed as a tool to be designed, used and shaped
by humans for human purposes. Technological systems are subordinated to community needs
across a broad spectrum of considerations – not just in terms of service requirements and
applications, but in fundamental system designs, as well.

Because communications is a central dynamic of active community life, social cohesion –
which focuses on the promotion of social dialogue – is communications with a view to
improving conditions. Communication in which knowledge can be exchanged within and
between diverse cultures should be a key goal.

For a dynamic system to successfully operate, all the elements of the system have to share
some critical common ground. The common ground is in recognizing that community
communication is a dynamic process, with various meanings for the people involved, with
varying attitudes toward privacy and published access, with various motives behind the act of
communication. Definitions of what constitutes the personal and informal in communication –
as opposed to that which is public, external and functional – should come from the
communities themselves.

From a technical perspective, given the hard-wired nature of information and communication
technology and the commonly practiced top-down approach accompanying it, technocratic
values can sometimes invisibly and even unintentionally saturate an entire community
technology initiative. Issues around cost, access and control, privacy and distribution, amongst
many others, have to be considered at the design stage from a community perspective.

Technological imperatives, which distort human or community actions, are ultimately
dysfunctional and form a dangerous basis for determining community policy and practice. The
fundamental questions of who benefits from community technology, who owns it, who controls
its distribution and applications, and who defines the nature of communication are central to
any consideration of the sustainability of community technology.

In recent years, innovative examples of community based organizations using technology as a
strategic tool to support the community have begun to surface. Digital technologies are
effective tools to support and enhance advocacy and organizing efforts. E-mail listservs,
facilitated discussion lists, online action alerts, and other tools, are most successful when they
promote and build upon offline activities.

One of the most effective uses of IT tools is to facilitate coordination of activities, improve
communication and build or strengthen relationships. These tools can also be applied to
improve the delivery of social services. For example, the strategic use of technology can

                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                      Page 40 of 74
streamline service delivery, help social service organizations serve a larger number of
constituents, and facilitate collaboration across organizations.

The Internet is moving more and more towards interactivity, with complex back-end databases
allowing users to create individual online experiences by accessing information that is
customized to their needs. Community groups use interactive databases to help their
constituents find employment, community assets, and other local information. GIS and other
information systems help identify and organize data according to location. These tools are
being used for public policy development, neighborhood planning, advocacy and research.

City of Minneapolis (COM) has the opportunity to take a leadership role in closing the “digital
divide” by establishing a set of principles to guide the operations of a collaborative effort.
COM can help to coordinate community technology initiatives to create a common technical
platform and ensure the usefulness and consistency of applications. We can help to
decentralize access to information and database tools, promote communication and cross-
learning across our community technology centers, provide strategic seed funding, and provide
accessible and affordable central support and technical assistance.

Access for individuals, capacity building for organizations, content and applications
development, taken together, constitutes a comprehensive strategy for bridging the digital
divide. The Minneapolis Broadband Wireless and Fiber Network initiative serves the
important function of building the infrastructure upon which we can develop strategies for
greater social and economic inclusion. Parallel to this universal access strategy, we need
efforts that promote the development of relevant content for residents, businesses and visitors
and innovative applications that can support the work of community based organizations
focused on promoting equity and, economic, social and cultural benefit for the residents,
businesses, visitors and employees of City of Minneapolis.

CTEP AmeriCorps has selected City of Minneapolis as a 2004-05 Host Site partner. We have
the opportunity to recruit, select and supervise a volunteer resource for the next year to assist us
with the Minneapolis Wireless Broadband and Fiber Network initiative. I believe the focus of
these individuals’ efforts should be on completing necessary research and community planning
activities to help City of Minneapolis develop policies and programs to bridge the digital
divide.

General Benefits
The public / private partner’s network will provide extensive coverage of broadband
capabilities to the entire City. Even residents or businesses that cannot receive digital cable or
DSL services will be able to receive broadband services. Customers will be able to realize true
portability. Anyone with a wireless account through this service will be able to roam from
location to location within the broadband wireless mesh.




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February 16, 2006                                                                      Page 41 of 74
In a typical first stage of this initiative, users will be able to use one account anywhere in the
city. Where DSL and cable require new accounts at each location, broadband wireless users
will be able to use one account at all locations– home, office, parks, restaurants, etc. The
approval of this initiative by the City would emphasize the City’s support of homegrown
businesses and its continued backing of the local economy. More local jobs can improve the
economy, minimize commuter traffic and improve public perception of the City as an economic
and technological leader.

By being among the first cities to deploy the a city scale wireless network, it is likely
Minneapolis based businesses and individuals will be involved in the creation of new third
party software and communications applications that can be used in municipal wireless
networks throughout the USA and world. Location based services (GPS) for public safety,
commerce, and tourism are just a few among many types of applications yet to be developed
that we in Minneapolis can develop, test, and prove out for a new emerging industry. Jobs and
businesses will be created in Minneapolis if we move forward first becoming a leader with new
products and services that other wireless network system operators will use.

Future Services
Future applications that could be supported on the municipal wireless network include Voice
over IP (or Internet Telephony) and streaming entertainment. Next generation intelligent IP
communications devices add VoIP communications together with wireless installations. Home
media centers with built-in 802.11 gateways capable of accepting streaming entertainment
directly to the home are just beginning to emerge on the market.




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6.0 PRODUCT AND SERVICES SOLUTIONS

Products and Services
The subsections that follow below summarize the expected products, services, and capabilities
that will be deployed and/or become enabled City-wide by the ultimately selected private
contractor that will own, install, and operate the broadband network.

•   Subscriber Services (each service will likely be branded):
       o Fixed Managed High-Speed Wireless Broadband Connectivity
                   Internet Access – provides broadband wireless access for the City,
                   residences and businesses
                   T-1 Replacement – broadband wireless access as a replacement for a
                   telephone company or other carrier’s wired T-1 service
                   Disaster Recovery / Redundant Access – broadband wireless access as an
                   addition to wired service to serve as a backup route in a disaster recovery
                   scenario
       o Mobile Managed High-Speed Wireless Broadband Connectivity
                   Emergency – high-speed broadband access for mobile police, fire, and other
                   public safety and emergency personnel
                   Non-Emergency – broadband access for non-public safety or emergency city
                   workers, including public works, building inspectors, traffic and parking
                   enforcement, social workers, etc.
                   Mass Transit (low-speed for non subscribers, but high-speed for subscribers)
                   – broadband wireless access for subscribers while riding mass transit or light
                   rail vehicles
                   Water Meter Reading – wireless dispatch of readings from water meters or
                   other utilities controlled by the city
                   Homeland Security – broadband wireless access available as an alternative
                   method of communication for mobile City staff associated with Homeland
                   Security mandates
•   Added Value Services:
       o Web Hosting Solutions – provided to residential and small business subscribers –
           available as a standard or premium level service
       o Email Hosting Solutions – fixed number of e-mail addresses provided as part of the
           subscription service to both small businesses and residential customers – available
           as a standard or premium level service
       o Anti-Virus and UBE (Unsolicited Bulk Email) Filtering - provided as part of the
           subscription service to both small businesses and residential customers




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 43 of 74
•   Amenity Services:
      o Fixed Managed Low-Speed Wireless Narrowband Internet Connectivity (casual
          user)
                 Casual Internet Access – low-speed Internet connectivity would be made
                 available Citywide to all residents and visitors. This service would mirror
                 the typical Hot Spot connectivity available at nearly 300 locations
                 throughout the metro area today. Subscribers to the Minneapolis broadband
                 wireless service would have high-speed connectivity available to them at all
                 locations throughout the City. The targeted locations include City parks,
                 libraries and other public spaces.
      o Mobile Managed Low-Speed Wireless Narrowband Connectivity
                 Casual Internet Access – low-speed for non-subscribers, but high-speed for
                 subscribers. The targeted locations include buses, light rail and vehicles.

Fixed Managed High-Speed Wireless Broadband Connectivity
In addition to supporting the defined business requirements for the City’s institutional users, the
selected private partner will also focus on the provisioning of broadband Internet access to
businesses and residents. Bandwidth is typically provided over the 2.4 GHz (Giga-Hertz)
spectrum. To access this service, a user will have to either call the toll free number provided on
the web site and other marketing materials or sign up online via a secure web portal page. The
user will be provided with a user name, password, and access instructions upon approval of
their credit card. Users will initiate a connection via their built in Wi-Fi, external USB Wi-Fi,
or internal PCI or PCMCIA Wi-Fi Card and enter their login information. The users will then
have a symmetrical connection (upload and download speeds are expected to be the same) to
the Internet. This connection is equivalent in quality to business-class SDSL services. Users
will have access to email services and complete portability within the Wi-Fi cloud.

T-1/Wired Service Replacement and Disaster Recovery
The selected private partner, via use of the licensed spectrum, can also offer high capacity
HiCap bandwidth services to businesses. Bandwidth services differ from access services
primarily in terms of available bandwidth. HiCap bandwidth services typically use the 5GHz
frequency. This is equivalent in quality to business-class wired services without the local loop
or mileage charge requirements of the Local Exchange Carrier (LEC). By tapping in to key
points on an existing fiber network, a public/private partner can set up a
transmission/regeneration tower that transmits the bandwidth via microwave to the next
regeneration tower utilizing radios and antennae.

It is important to remember that this technology is providing T1 type bandwidth to businesses
without utilizing the Local Exchange Carrier (LEC) and the business will be responsible for
their own internal network, which may or may not be Wi-Fi capable. Businesses that wish to
keep their wired service connections (T-1, etc.) can also subscribe to broadband wireless access
to ensure “always-on” connectivity in the event of a disaster situation that renders their wired
service inoperable.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 44 of 74
Technology - 802.11 and 802.16 Standards
The Institute of Electrical and Electronics Engineers (IEEE) has published a set of ratified
standards for the deployment and operation of wireless Local Area Networks under the 802.XX
family. The IEEE 802 LAN/MAN Standards Committee develops Local Area Network
standards and Metropolitan Area Network standards. The most widely used standards are for
the Ethernet family, Token Ring, Wireless LAN, Bridging, and Virtual Bridged LANs.

802.11 refer to a family of specifications developed by the IEEE for wireless LAN technology
and specify an over-the-air interface between a wireless client and a base station or between
two wireless clients. The IEEE accepted the specification in 1997. There are several different
specifications within the 802.11 family:

    •   802.11 -- applies to wireless LANs and provides 1 or 2 Mbps transmission in the 2.4
        GHz band using either frequency hopping spread spectrum (FHSS) or direct sequence
        spread spectrum (DSSS).
    •   802.11a -- an extension to 802.11 that applies to wireless LANs and provides up to 54
        Mbps in the 5GHz band. 802.11a uses an orthogonal frequency division multiplexing
        encoding scheme rather than FHSS or DSSS.
    •   802.11b (also referred to as 802.11 High Rate or Wi-Fi) -- an extension to 802.11 that
        applies to wireless LANS and provides 11 Mbps transmission (with a fallback to 5.5, 2
        and 1 Mbps) in the 2.4 GHz band. 802.11b uses only DSSS. 802.11b was a 1999
        ratification to the original 802.11 standard, allowing wireless functionality comparable
        to Ethernet.
    •   802.11g -- applies to wireless LANs and provides 20+ Mbps in the 2.4 GHz band.

802.16, the specification for Wireless Metropolitan Area Networks, released in early 2003, was
an air interface standard for broadband wireless access systems using point-to-multipoint
infrastructure designs, and operating at radio frequencies between 10 GHz and 66 GHz. It
targeted an average bandwidth performance of 70 Mb/s and peak rates up to 268 Mb/s. The
802.16 standard is intended to address some of the perceived limitations of 802.11 such as
range and mobility. Ongoing development within the IEEE working groups for 802.16 has
provided additional changes to the original specification that are summarized below.
    • 802.16a-- 802.16a, or WiMAX. 802.16a, which was approved by the IEEE in January
        2003, is basically an amendment to the more general 802.16 core standard developed by
        the IEEE. The 802.16a collection of amendments took into account the emergence of
        licensed and license-exempt broadband wireless networks operating between 2 GHz and
        11 GHz, with support for non-line-of-sight architectures that could not be supported in
        higher frequency ranges. 802.16a added specifications for enhancements at the Physical
        and Media Access Control layers for improved interoperability.
    • 802.16 Revision D--While 802.16a does much to improve on the original standard, the
        core standard had so many amendments attached to it that the IEEE re-drafted the
        specification. The new standard, referred to as 802.16 Revision D was approved by the
        IEEE-SA Standards Board on June 24, 2004.
    • 802.16e—A new amendment, 802.16e, that introduces mobility into the WiMAX
        standard was approved, as IEEE Std 802.16e-2005, by the IEEE-SA Standards Board
        on 7 December 2005. The 802.16e amendment covers "Physical and Medium Access
        Control Layers for Combined Fixed and Mobile Operation in Licensed Bands".


                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                     Page 45 of 74
According to a Visant Strategies study: http://www.visantstrategies.com/pr80216.htm; the more
robust 802.16 standard, for high-speed broadband wireless delivery to laptops and desktops,
will augment the burgeoning Wi-Fi market. The position of the 802.16a standard today
parallels that of WLAN technology in the late 1990’s, when the market finally grew as 802.11
prices vs. performance gains converted WLAN from a niche to mass market. “Under the
current conditions, 802.16a could emulate 802.11’s rise several years from now,” said study
author Visant Strategies Senior Analyst Andy Fuertes. “Many chip and equipment vendors
ignored the chance to get into the 802.11 market early and create market share due to market-
size limitations created by high equipment costs, a much smaller potential audience and no
need for all things Internet and Intranet yet. WiMAX offers these technology companies a
fresh start.”

The 802.16a and 802.16e standards are considered the next step beyond Wi-Fi because they are
optimized for broadband operation, fixed and mobile, in the wide area network. The 802.16
standards include numerous advances such as quality of service, enhanced security, higher data
rates, and mesh and smart antenna technology.

The City’s decision to contract with a private partner to deploy, operate, and continuously
upgrade the planned broadband network eliminates the need for the City to continuously
monitor standards development as well as the costs and the responsibility to deploy new, more
effective broadband technologies on an ongoing basis.

The table below presents a comparison of the capabilities of equipment that complies with both
the 802.11 standard and the evolving 802.16 standard.




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 46 of 74
 Category                  802.11                         802.16                 Technical Explanation
Range               •    Optimized for              •   Optimized for             • 802.16 physical
                         users within a 100             typical cell size of         layer tolerates 10
                         meter radius                   7-10 Km                      more multi-path
                    •    Add access points          •   Up to 50 Km                  delay spread than
                         or high gain                   range                        802.11
                         antenna for                •   No “hidden node”
                         greater coverage               problem
Coverage            •    Optimized for              •   Optimized for               •    802.16: 256 OFDM
                         indoor                         outdoor                          (vs. 64 OFDM)
                         environments                   environments                •    Adaptive
                                                    •   Standard support                 modulation
                                                        for advanced
                                                        antenna
                                                        techniques and
                                                        mesh
Scalability         •    Channel                    •   Channel                     •    Only 3 non-
                         bandwidth for 20               bandwidth is                     overlapping
                         MHz is fixed                   flexible from 1.5                802.11b channels; 5
                                                        MHz to 20 MHz                    for 802.11a
                                                        for both licensed           •    802.16: limited
                                                        and license                      only by available
                                                        exempt bands                     spectrum
                                                    •   Frequency re-use
                                                    •   Enables cell
                                                        planning for
                                                        commercial
                                                        service providers
Bit rate            •    2.7 bps/Hz peak            •   3.8 bps/Hz peak             •    802.16: 256 OFDM
                         data rate; up to 54            data rate; up to 75              (vs. 64 OFDM)
                         Mbps in 20 MHz                 Mbps in a 20
                         channel                        MHz channel
                                                    •   5 bps/Hz bit rate;
                                                        100 Mbps in 20
                                                        MHz channel
Quality of          •    No QoS support             •   QoS designed in             •    802.11: contention-
Service                  today – 802.11e                for voice/video,                 based MAC
                         working to                     differentiated                   (CSMA)
                         standardize                    services                    •    802.16: grant
                                                                                         request MAC




                        City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                             Page 47 of 74
Preferred Architectural Direction
The City’s broadband network RFP noted that the City recommended deployment of a
broadband IP data access network that would provide support for the 802.11b and 802.11g
standards and that this 2.4 GHz network employ a mesh architecture for the most effective
coverage and a reduction in wired access points. The mesh overlay should dynamically route
wireless traffic along the highest throughout path to a wired gateway. This intelligent routing
will negate the effect of radio frequency interference and eliminate 90-95% of the wired
backhaul traditionally associated with wireless network access point solutions. Additionally,
the City’s contractor should use a combination of City fiber and fixed point-to-multipoint
wireless technology for its backhaul connections.

Equipment based upon the 802.16 standard for Metropolitan Wireless Area Networks will
provide more range and increased mobility options, and major manufacturers of 802.11b
compliant equipment are now introducing equipment that complies with the 802.16
specifications. It is expected that the ultimately selected private partner will utilize a range of
network infrastructure equipment that will include forward-compatibility functionality.


Technology and Service Offerings
The chart inserted below lists various service types and applications that can be offered on the
planned metro-scale broadband access network from the ultimately selected private partner.
For each of the services and applications that will be supported, the chart provides the
opportunity level (High, Medium or Low) currently estimated for adoption of that particular
service or application in the three primary markets of Institutional, Residential, and Business
customers. A column has also been inserted to cite the services expected to be adopted by City
visitors, convention exhibitors and others who would access the network and consider it a City
amenity.




                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                        Page 48 of 74
  Wireless Service         Residential         Institutional          Business        City Amenity
      Offering                                                                        and Visitors
Fixed Managed
High-Speed Wireless
Broadband
      Internet Access          High                Low                  High             High-
                                                                                       convention
                                                                                       exhibitors
     T-1 Replacement           N/A                 High                 High            Medium-
                                                                                       exhibitors
                Disaster       N/A               Medium                 High              N/A
Recovery/Redundancy
Mobile Managed
High-Speed Wireless
Broadband
    Emergency/Public           N/A                 High               Medium              N/A
                  Safety
         Public Works          N/A                 High                 N/A               N/A
  Building Inspectors          N/A                 High                 N/A               N/A
       Traffic/Parking         N/A                 High                 Low               N/A
         Monitoring &
          Enforcement
       Social Workers          N/A                 High                 N/A               N/A
      Fixed Managed
 Low-Speed Wireless
         Narrowband
         Connectivity
Casual Users in parks,         High              Medium                 High             High
       plazas, libraries
Mobile Managed
Low-Speed Wireless
Narrowband
Connectivity
Casual Users in buses,         High                Low                Medium             High
   light rail, and other
           mass transit

Customer Support
The ultimately selected private partner will be required to provide an exemplary level of
customer service. In addition, the private partner must ensure that the deployed network
provides the highest level of technical functionality possible. The City’s expectations include:
    • Fast and Professional Installation where required
    • Reliable and dependable Quality of Service (QoS)
    • Highly secure connections
    • Always-On Access
    • 24x7x365 Customer Service

                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                       Page 49 of 74
Installation
The selected private partner will provide comprehensive installation services, where required,
to ensure that all new customers are brought on line quickly and accurately. While physical
installation will only be necessary for businesses and for those residential facilities where
residents have not purchased and installed their own Customer Premise Equipment (CPE), the
overall goal of the enterprise will be to provide prompt and effective installations. This will
include:
    • On-site pre-installation review and design
    • Service installed within 10 business days of receipt of order
    • Baseline service certification, including on-site signal, speed, and other testing metrics

Help Desk Services
The City of Minneapolis wireless broadband access network provider will be required to
provide a toll-free number directly to call center agents in its technical service center, as well as
on-line access to the technical center for E-trouble/service tickets 24 hours a day.

    •   Hardware – The private partner will provide a one-call source for hardware and
        software help desk support. The kinds of help offered will include
        •      Support for new installations
        •      Problem diagnosis and resolution
        •      How-to-do-it assistance
        •      7x24x365 on-call emergency support
    •   Software – The private partner will provide a one-call source for software help desk
        support. The service will include:
        •      Connection to a software support specialist
        •      Access to technical expertise 7x24x365


Marketing and Sales
While the initial deployment of the broadband IP data access network is intended to provide
support for City operations, the ultimate success of the private partner to install and manage a
metro-scale wireless broadband access network will depend upon the effectiveness of the
marketing and sales strategy that is employed to promote and sell network connectivity and
wireless access services. Through the RFP process, the City of Minneapolis requested
information from competing vendors regarding the sales and marketing strategies that they
would employ to promote the highest level of adoption by residential subscriber and business
customers. Cities that have completed or just recently begun deployment of such wireless
networks have utilized a host of marketing and sales techniques to ensure the success of their
cooperative initiatives, to increase public awareness of the offerings available, and to guarantee
the market penetration the contractor needs to achieve the ROI or revenue streams envisioned
in their planning processes. Some cities have held large, public events introducing the
community at large to their new wireless networks. Cities are also publicizing the availability
of wireless broadband access on their web sites, in City publications, in marketing approaches
to potential convention managers, in press releases and other documents issued by their
Economic Development organizations, in local newspapers and magazines, and in City utility
bills.


                     City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                       Page 50 of 74
Both of the finalists selected have extensive sales and marketing capabilities, which they
employ to acquire new subscribers or to offer additional services to existing subscribers. One of
the finalists, US Internet is already a leading provider of IP based network services in
Minneapolis, with thousands of Minneapolis based business and residents as customers.
Wireless broadband, with its flexibility, would enhance their current offerings to existing
customers along with giving them an excellent opportunity to earn new subscribers throughout
Minneapolis, as well as expanding their product offering to existing customers. Both of the
finalists have indicated that they would use a variety of sales and promotional tactics and
strategies to foster the economic success of their proposed solutions. In addition to using the
services of Value Added Resellers to market their planned service offerings, the ultimately
selected contractor would utilize a multitude of sales and marketing strategies that would likely
include the following:
    • Telemarketing services
    • On-Line Web advertising
             o Portals
             o Browser capture and signup for transient traffic
    • Radio
    • Bill Board Advertising
    • Direct Mail
    • Existing Sales Teams
    • TV Advertising
             o Local Networks
             o Cable
             o Satellite
    • Airport advertising
    • Transportation Advertising
             o Light Rail
             o Taxi
             o Bus
    • Newspapers
             o Star Tribune
             o Pioneer Press

    •   Magazines
          o Local publications
          o Airline magazines


Network Operations
It is critical that a broadband wireless network be properly managed to ensure effective service
management, service provisioning, quality /class of service management, performance
management, configuration management, and appropriate billing. Under the City’s planned
approach, this service would be provided by the network service provider. One company,
Pronto Networks, manufactures and distributes their Operations Support Systems software and
this suite is becoming the de facto industry standard for service management. A description of
the software suite follows below:

                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 51 of 74
Pronto's Hotspot OSS™ is a carrier-class Operations Support System for large-scale, public
wireless broadband networks. The Hotspot OSS is an open, standards-based Wi-Fi service
delivery solution that enables rapid, cost-effective wireless broadband deployment and lower
ongoing operational costs.

The OSS provides a tightly integrated platform that enables plug-n-play provisioning of edge
devices, real-time authentication, subscriber management, billing mediation, customer care,
roaming settlement and network management, all in a single platform for optimal
efficiency. Key features of the Pronto OSS include:
    • Plug-n-Play Provisioning of Edge Devices: enables remote provisioning, monitoring
        and management of multi-vendor edge devices.
    • Subscriber Management: allows for bulk provisioning of existing users as well as
        Network Operations Center (NOC) managed user provisioning. Provides real-time
        session, subscriber and network information. Includes customer care functionality,
        including subscriber self-care, incident tracking and account adjustment and refund.
    • Service Creation: enables definition of different service plan profiles, including usage-
        based, flat rate plans, peak/off-peak billing, and location-specific plans. Handles
        multiple payment options, including credit cards and pre-paid cards, and allows
        definition of different Classes of Service.
    • Multiple Authentication Realms: provides Radius AAA and 802.1x support as well as
        multiple authentication options through external sources, including Radius, SIM, SMS,
        MSN Passport, etc.
    • Billing and Mediation: enables rating and billing mediation into existing postpaid
        billing systems, including XML, AAA, and IPDR formats and supports pre-paid billing.
    • Remote Network Management: allows real-time viewing and management of the Wi-
        Fi network edge elements. Manages real-time session quality and network information.
        Stores all subscriber and network (QoS) Quality of Service data for customer care and
        network maintenance. Provides ability to set alert thresholds for edge elements and
        generate automatic email alerts.
    • Roaming Services: manages roaming agreements with major aggregators, including
        iPass, GRIC and Boingo and offers Inter-WISP roaming. Provides integrated clearing,
        settlement and reconciliation.

One excellent capability of such software, whether it is provided by Pronto Networks or not, is
that it allows subscribers to be provisioned with specific Classes of Service, e.g. standard,
premium, etc. For example, the City and its selected contractor could negotiate an arrangement
to allow anyone access to e.g. 256 Kbps access from a City park but, when a premium user logs
on, they could be recognized as such and provided with full T-1 access.




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 52 of 74
Security
The City is highly cognizant that network security is a high-priority for a wireless broadband
system and fully understand that it is important to identify key methods of providing data
encryption within the system. A wireless mesh network utilizes several components to ensure
data security. These include:
    • User-defined traffic filters, including filters that allow access only to authorized VPN
        servers
    • MAC address access control lists
    • AES encryption of wireless routing protocols
    • 128/40 bit WEP
    • Full VPN compatibility

The 802.11x standard wireless protocol provides two types of basic encryption: Service Set
Identification (SSID) and Wired Equivalent Privacy (WEP). It is however, a relatively well-
known fact that wireless networks – by themselves – do not provide adequate security. In
addition to the security requirements stated above, new security measures have recently been
issued under 802.11i. The new IEEE standard brings stronger encryption and better security
protocols to the table in an aim to replace the de facto security protocol known as WEP (wired
equivalency protocol). Building on WPA, 802.11i not only uses the Temporal Key Integrity
Protocol (TKIP), which routinely switches encryption keys before they can be easily hacked,
but also requires the Advanced Encryption Standard (AES), which meets the US Federal
Information Processing Standard (FIPS) 140-2 specification The City has planned for this
contingency by ensuring that the RFP process requested that competing vendors provide
extensive information regarding the technologies that they would employ to ensure the highest
level of security within their proposed wireless broadband access network. Their responses to
these questions were a very key evaluation criterion in the selection of the finalist vendors.




                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 53 of 74
7.0 FINANCIAL SUMMARY




                                  Wireless Minneapolis Start Up Costs

                                                         Electrical Power and Misc.
                         Digital Inclusion Funding
                                                               $1,750,000.00
                                $500,000.00
    Marketing and Advertising,                                                   Mesh Radio Network,          Mesh Radio Network
          $350,000.00                                                              $8,000,000.00              Backhaul Network
                                                                                                              Data Center Backend

                                                                                         Backhaul Network,    Fiber Optic Plant
                                                                                           $1,000,000.00      Personnel Costs
                                                                                                              First Year Losses

           First Year Losses,                                                                                 Marketing and
                                                                                       Data Center Backend,   Advertising
            $12,000,000.00                                                                 $100,000.00        Digital Inclusion Fund
                                            Personnel Costs,
                                              $750,000.00                Fiber Optic Plant,
                                                                          $3,500,000.00



                                       Total Capital Funding Requirement
                                                   $27,950,000

                                    -15% $23,757,500                   +15% $32,142,500




The numbers in the pie chart above are based on detail provided in the RFP responses from
nine different vendors including the finalists; USI Wireless and EarthLink. In addition, prior
BIS and Time Warner design and cost estimates to complete the fiber infrastructure were
utilized to validate required investment for fiber optic plant. The Public Works Department
provided helpful input regarding the complexity and potential cost of provisioning power to
city owned street lights and facilities used to support wireless antennas and access point radios.
Numerous discussions with community based organizations regarding digital inclusion
initiatives, as well as a series of community input meetings, was used to create an estimate of
seed funding required to address priority needs.

The reference to $150,000 per square used on page 10 of this report is associated with the five
year cost of ownership for the wireless infrastructure only. The estimate of $8 million for these
mesh radio network components divided by 59 square miles equals $136,000 per square mile.




                           City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                                               Page 54 of 74
8.0 FUNDING
Funding for the deployment of the citywide broadband wireless network could come from four
sources: taxpayers, vendors, investors, and grants.

Taxpayers
The capital required by the City to cover the cost of system varies greatly depending upon the
business model selected. If the City chooses to own the system in its entirety, the most like
recourse is to issues bonds or divert capital from our existing budget obligations. The annual
principal and interest payments (debt service) on $20-25M for 10 years at 5% is $2.6-3.2
million. The assumption would be that the City would pay this from user fees, but the City
takes the business risk that we don’t sign up enough customers. The key question we must ask
is, if we have a ten year plan to pay off our bonds and if five years down the road a new
technology emerges that undercuts our offerings and we loose customers, how will we retire
our dept obligations? Who do we want to bear that risk, the City or the private sector? We are
dealing with emerging technology here and obsolescence in three to five years is a great
concern.

Under the City Charter the City can’t issue more than $15 million in General Obligation bonds
for a single project. If we need to borrow more than $15 million we have the following options:

    •   We may have more than one project; if so, then we can issue up to $15 million for each.
        Our bond counsel and City Attorney need to help answer this question.
    •   Ask the voters of Minneapolis for the approval to issue more (we rarely do this).
    •   Ask the legislature for special law (we rarely do this).
    •   Change the form of borrowing to a tax-exempt lease, which is somewhat more costly
        and rarely done, but possible.
    •   Use cash reserves to fund the amount in excess of $15 million.
    •   If the system is privately operated we may be able to have the private operator provide
        all or a portion of the capital fund via a lease. This is more costly than most other
        options.

Vendors
Various wireless network service providers have provided cities with the required capital to
acquire the necessary equipment and deploy wireless municipal networks. There is, however,
a limited pool of capital sources focused on city scale wireless business opportunities. The
ability to secure capital for programs such as the Minneapolis initiative will become
increasingly difficult as cities such as Chicago and Houston enter the market. Both cities have
stated they intend to follow the Public/Private Partnership business model that depends upon
such sources of capital.


Investors
Minneapolis may also directly seek capital from outside investors by releasing the wireless
network business plan complete with appropriate cost and revenue projections. As outlined
above, the most likely source of such investment is through the bond markets.



                    City of Minneapolis – Broadband IP Data Access – Business Case
February 16, 2006                                                                    Page 55 of 74
    Grants
    The City may also seek to fund portions of the network deployment cost with capital obtained
    through various available grants. We believe this would be most applicable for improvements
    made to the fiber optic plant. Our design considerations afford the City significant expansion
    to support our desired Public Safety, Homeland Security and Emergency Preparedness driven
    infrastructure modifications. The preparation of specific grant requests earmarked to fund such
    enhancements is now underway.




                              Potential Sources of Revenue

                                               Year 1      Year 2        Year 3            Year 4        Year 5

City of Minneapolis Usage                      -           750,000       1,000,000        1,300,000    1,500,000

Residential Broadband Access                   75,000      2,500,000 4,500,000            7,500,000    9,000,000

Business Broadband Access                      150,000 2,500,000 8,000,000                10,000,000 13,000,000

Fixed Wireless Connectivity                    25,000      450,000       1,200,000        1,500,000    1,750,000

Business Traveler/Visitor                      -           750,000       2,000,000        2,750,000    3,500,000

Applications Services                          -           -             600,000          900,000      1,200,000

Wholesale Access                               100,000 250,000           450,000          700,000      1,000,000

Total                                          350,000 7,200,000 17,750,000 24,650,000 30,950,000




    We estimate the basic price point for broadband residential services to be in the range of $18-
    $24. Basic business services are estimated to be available at lower than current comparable
    DSL and T-1 pricing in the marketplace. Visitor pricing for mobile services city wide are
    estimated at rates favorable to current hotel and national hot spot offerings and offer superior
    bandwidth and roaming.

    The estimates assume 168,000 households in Minneapolis with current Broadband penetration
    at approximately 45%. This means 76,139 home now utilize broadband services. According to
    internet retailer.com an additional 46,155 use dial up services and 55% of those users indicate
    they would switch to broadband if available and similar in price to dial up services.




                         City of Minneapolis – Broadband IP Data Access – Business Case
    February 16, 2006                                                                           Page 56 of 74
The revenue projections further assume a take rate of 10% of this user community by year two.
According to real estate industry research, there are 40,563 businesses in the City of
Minneapolis, half of which employ fewer than five individuals. Only 25 businesses employ
more than 5,000 individuals. Our estimate is that the provider will derive approximately
$1,000.00 per year in revenue from an estimated 2,500 businesses by year two. We anticipate
break even levels of revenue from all sources will be achieved in year three. That points to a
reasonable level of risk for experienced providers and a very high level of risk for a start up
enterprise. There is no assurance that this level of subscriber revenue is sustainable.

Cedar Falls, Iowa has had a municipally owned communications system for nine years. The
system has covered its operating costs since the second year, but not its capital and finance
costs, which we can track with a financial measure called free cash flow to investors. The
Cedar Falls municipal communications system has had negative free cash flow every year
except one. It is $3.1 million short of paying back what taxpayers have paid into it. Cedar Falls'
municipal communications system has operated with a negative annual free cash flow to equity
in all but one year. Its internal rate of return is –7.24 percent, meaning it has been a poor
investment for taxpayers and ratepayers.

Muscatine, Iowa has had a municipal communications system for six years. It's had negative
free cash flow every year except 2004. It is $25.6 million short of payback. Muscatine's
municipal system increased its total debt from $20.30 million in 1998 to $36.49 million in
2004. It is $25,554,984 below its payback point after seven years of operation, and its internal
rate of return is –84.7 percent.

Spencer, Iowa has had a municipal communications utility since 1999. Spencer had negative
free cash flow until 2003 and seems to have had a positive cash flow since then ... but Spencer's
electric utility has paid more than $9 million in capital costs for the communications utility,
transferred $1.55 million in assets to the communications utility, and loaned it $8 million at 4.5
percent interest, less than the 5.75 percent the electric utility pays for its own bonds. Spencer's
communications utility appeared to achieve positive annual free cash flow to equity in 2003
and 2004 after four years of deficits, but it has received large subsidies from Spencer's electric
utility. Adjusting for these subsidies eliminates Spencer's surplus. The combined investment by
the two utilities is $18,286,703 below its payback, and its internal rate of return is –45.79
percent.

Bristol, Virginia operates a municipal communications utility that it launched in 2002. It too is
unlikely ever to achieve positive free cash flow. It was originally funded by a $15 million
revenue bond issue, and then refunded in 2004 at $27.5 million. It has borrowed $14.9 million
from the electric utility and has had operating losses (including cost of capital and interest) of
$8.6 million so far.

The City’s position in the Public/Private Partnership model, in contrast to the position of the
cities noted above, provides significant leverage to ensure strong Vendor performance during
the life of this contract. The City will own the fiber optic infrastructure.




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February 16, 2006                                                                      Page 57 of 74
This ownership, our control of the right of way, and the City’s anchor tenancy will allow the
City to fully enforce Community Benefits and Service Level Agreements, and ensure that by
leveraging its position the same competitiveness and network performance will be available to
residents and businesses. The City will negotiate specific consequences associated with
network vendor’s performance. Should the City determine that contract termination is
appropriate; the terms typically negotiated will allow the City to assume full control and
ownership of the network through a buy out option triggered by such non-performance.




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February 16, 2006                                                                    Page 58 of 74
9.0 Glossary of Telecommunications & Technology Terms

Baud - A measure of the speed at which data is transmitted, computed in number of elements
changed per second. The “Baud Rate” is the speed in which computers can transfer data
through a modem using communications software.

Bandwidth - A range of frequencies in the broadcast spectrum that is occupied by a
transmission signal and the capacity of a telecom line or wireless transmission to carry signals.
(For example, a television channel may have a bandwidth of 6 MHz.) The “necessary
bandwidth” is the amount of spectrum required to transmit the signal without distortion or loss
of information. Commission rules require suppression of the signal outside the band to prevent
interference. In digital systems, the bandwidth of the system is the speed at which data is
transmitted over the system, measured in bits per second (bps).

Base Station - A land station in the land mobile service. For example, in cellular and personal
communications uses, each cell has its own base station; each base station is interconnected
with other base stations and with the public switched network.

Broadband - Broadband is a descriptive term for evolving digital technologies offering
consumers a signal switched facility offering integrated access to voice, high-speed data
services, video-demand services, and interactive information delivery services. . The FCC's
definition of broadband is any system capable of transmitting data in excess of 200 Kbps
upstream and downstream. All communications systems that operate at a slower speed than
broadband are called “narrowband”.

Broadcast - To transmit a signal over the spectrum to be received by two or more receiving
devices.

Browser - A software program used to query, search and view information on computer sites
connected to the Internet.

Local Exchange Carrier (“BLEC”) – The local telephone company.

Byte - A set of “bits” that represent a single character. Usually there are eight bits in a Byte.

Cable modem - A cable modem is a device installed in the home that enables cable modem
subscribers to attach personal computers to a local cable TV line and interact with the Internet
at high speeds.

Competitive Access Providers - Common carriers who provide local service and compete
against local telephone companies’ access services that connect customers to long distance
companies. These carriers often use fiber optic networks.

Convergence - In this context, convergence means that providers of communication systems
can deliver products and services that compete with the products and services now delivered by
other networks. One example would be a cable company providing local phone service or a
local phone company providing video services.


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February 16, 2006                                                                       Page 59 of 74
Customer Premises Equipment (CPE) - Terminal devices, such as modems, routers etc.
located on the customer’s premises.

Digital Subscriber Line (“DSL”) - A broadband service offered by telephone companies.
DSL technology is capable of transmitting digital information at high bandwidths (up to 6
Mbps) on existing phone lines to homes and businesses. It also makes it possible to split phone
lines into two parts, one of which can be used for voice or fax communication while the other is
used to transmit data between computers.

Direct Broadcast Satellite (DBS/DISH) - A high-powered satellite that transmits or
retransmits signals, which are intended for direct reception by the public. The signal is
transmitted to a small earth station or dish (usually the size of an 18-inch pizza pan) mounted
on homes or other buildings.

Download (Receive) - To receive data from another computer into your computer. It is also
called “receive.” The opposite is called “Upload.”

Electronic Bulletin Board - A system located on a computer network that allows users to post
or receive information; it facilitates file sharing.

Electronic Mail (E-Mail) - E-Mail allows the user to send a message via a computer instantly
to one or many persons around the world. E-mail users typically have a “mailbox” on a
network or a videotext system where other users can send messages to be retrieved by the
recipient.

Fixed Service - Radio-communications service between specified fixed points.

Flat Rate - A method of pricing in which a fixed rate is charged for a given service, regardless
of usage. The fixed monthly charge that a residential subscriber in a local exchange pays to be
allowed to make an unlimited number of local calls is an example of a flat rate.

Footprint - The area in which a specific transmission can be received. Some footprints cover
as much as one-third of the earth, such as satellite or cell systems.

Frequency - A measurement of the number of electromagnetic waves that pass a given point in
a given time period. It is equal to the speed of light divided by wavelengths, and is expressed in
Hertz (cycles per second).

Gateway - Gateways provide a single source through which users can locate and gain access to
a wide variety of computer services. Gateways typically offer a directory of services available
through them, and provide billing for these services.
.
Gigahertz (GHz) - A unit of frequency equal to one billion hertz (one billion cycles per
second).

Global Positioning System (GPS) - A US satellite system that lets those on the ground, on the
water or in the air determine their position with extreme accuracy using GPS receivers.


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February 16, 2006                                                                     Page 60 of 74
Headend - The electronic control center of a cable system. This is the site of the receiving
antenna and the signal processing equipment essential to proper functioning of a cable system.

Hertz (Hz) - A unit of frequency equal to one cycle per second (cps). One kilohertz equals
1000 cps; one megahertz equals 1 million cps; one gigahertz equals 1 billion cps.

Host - Your Internet access provider’s computer. You may use one of its hard-wired terminals,
if you are at an institution with a mainframe computer connected directly to the Internet, or you
may dial up via modem to connect with the Internet access provider’s host computer.

Incumbent Local Exchange Carrier (“ILEC”) - An Incumbent (such as Pacific Bell or GTE)
is a telephone company in the U.S. that was providing local telephone service when the
Telecommunications Act of 1996 was enacted. (Also see RBOC.)

Interconnection - The connection of one telecommunication carrier’s network to another or
the connection of a piece of telephone equipment to the nation-wide telephone network.

Interface - The point at which two systems or pieces of equipment are connected.

Interference - Unwanted electrical signals or noise causing degradation of reception on a
communications circuit.

Internet - A computer network stretching across the world that links the user to businesses,
government
agencies, universities, and individuals. The Internet provides computers with the ability to
connect with other computers for communicating, disseminating and collecting information.

Internet Service Provider (“ISP”) - A company that provides individuals and other
companies’ access to the Internet and other related services such as web site building and
hosting. An ISP connects subscribers to the Internet in a manner similar to the way in which
phone lines connect users to the telephone network. Some ISPs offer specialized content to
subscribers in addition to access to the Internet.

Kbps - Kbps stands for kilobits per second (thousands of bits per second) and is a measure of
the speed data travels on a data transmission medium such as twisted-pair copper lines, coaxial
cable, or optical fiber.

Local Loop - In telephony, a local loop is the wired connection from a telephone company's
central office to a single customer’s telephone. This connection is usually on a pair of copper
line wires called twisted pair.


Mbps - Mbps stands for megabits per second (millions of bits per second) and is a measure of
bandwidth (the amount of data that can flow in a given time) on a data transmission medium
such as twisted-pair copper line, coaxial cable, or optical fiber.

Network/Networking - A group of computers connected in any way that allows data to be sent
among these computers

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February 16, 2006                                                                    Page 61 of 74
Real Time - Usually used to describe situations when two or more people are interacting via
their keyboards on the computer in real time, versus delayed back-and-forth communication,
such as with e-mail.

Regional Bell Operating Company (RBOC) - Any one of the seven monopoly local phone
companies. The Regional Bell Operating Companies, also known as the “Baby Bells”, were the
created as a result of the divestiture of AT&T in 1984 at the conclusion of the U.S. Department
of Justice antitrust lawsuit. Originally the seven companies were: Ameritech, Bell Atlantic,
BellSouth, NYNEX, Pacific Telesis, SBC and U.S. West. SBC subsequently acquired
Ameritech and Pacific Telesis, and Bell Atlantic acquired NYNEX and was subsequently
acquired by Verizon, reducing the number of RBOCs to four.

Service Provider – A provider that owns circuit-switching or packet-switching equipment.
Telecommunications - Any transmission, emission or reception of signs, signals, writing,
images, sounds or intelligence of any nature by wire, radio, optical or other electromagnetic
systems.
Wide Area Network (“WAN”) or Local Area Network (“LAN”) - The term WAN is used to
describe a data network used to interconnect a companies’ remote sites, or widely dispersed
computer equipment. The term LAN is used to de-scribe a local data network, one that is used
to interconnect the computer equipment of a commercial user.

Wireless Communication - Any broadcast or transmission that can be received through
microwave or radio frequencies without the use of a cable connection for reception.




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10.0 ATTACHMENTS




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February 16, 2006                                                                    Page 63 of 74
BIS Strategic Plan




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Jupiter Research Report




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February 16, 2006                                                                    Page 65 of 74
Council Resolution




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The RFP




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February 16, 2006                                                                    Page 67 of 74
City of Minneapolis Communications Plan




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FAQ’s




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Draft Pilot Specifications




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Workgroup Summaries




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Participant List




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Assessing the Digital Divide in Minnesota




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State of the Digital Divide in Minneapolis




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